Published: Tue, May 22, 2018
Health Care | By Cedric Leonard

Ossic is the latest crowdfunding failure to completely screw its backers

Ossic is the latest crowdfunding failure to completely screw its backers

Updated on May 21: Ossic has shuttered, and will not be able to ship out the majority of its Ossic X headphones. Kickstarter does have a policy in their terms and conditions that ensures companies have to use the money they collect on their company - they can't just, say, up and buy a house - but there's no recourse for a startup running out of funds. The start-up was able raise $2.7 million on Kickstarter and $3.2 million on Indiegogo.

For its part, the X headphones are actually pretty innovative and unique. To fail at the 5 yard-line is a tragedy. Ossic even shopped around for another company to take over where it left off, but they were either uninterested or unable to take on the financial burden to complete the Ossic X production. The startup may have overestimated how hard it would be to create a completely new product or the resistance they would receive from manufacturers and suppliers simply for the fact that they're a tiny company. "We are extremely sorry that we can not deliver your product and want you to know that the team has done everything possible including investing our own savings and working without salary to exhaust all possibilities". The Ossic X headphones were created to offer a 360-degree sound space that accounts for the listener's anatomy and head position to mimic the sounds of a 3D environment. The product obviously had its appeal: Ossic raised $2.7 million on Kickstarter and $3.2 million on Indiegogo, along with seed funding that nearly matched what was raised by the 10,300 crowdfunding backers.

When Tech Insider covered the Kickstarter campaign in 2016, Ossic was promising headphones that would sense the shape of your ears and head and customize the sound profile for each user.

While plenty of headphones offer surround sound, they don't really emulate 3D space around you.

Are you still reluctant to invest in crowdfunding campaigns? "Your voice of support throughout these past 2 years will continue to bring change to the industry, as bigger players than us refocus their efforts into better, smarter, and more immersive audio".

In noting that the company can not ship its remaining units, Ossic's statement claimed that the company would need to raise "more than two million additional dollars to complete mass production of the remaining backlog" in order to satisfy backers.

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"The company is shutting down effective immediately", the note continued.

Back in January this year OSSIC announced shipment of the first Innovator/Developer units which sold for $999 on Kickstarter, which were originally supposed to go out by the end of 2016.

The headphones were also able to track head position, which could have been exciting had it gone mainstream and allowed virtual-reality apps to build that functionality into their experiences.

Founders Jason Riggs and Joy Lyons will have a lot on their hands as backers are now up in arms over their false advertisement.

A Facebook group for angry Ossic backers has accumulated 1,800 members in 48 hours, according to the group's administrator.

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