The startup company OSSIC has developed the 3D sound headphones and they are half funded by crowds and other half was funded by other investors of the company. The company is said to be working on developing these headphones since for years and all the money that they have got from funding was used in the R&D and initial testing phases.
The company after taking tens of thousands if crowd-funding pre-orders for the high-end pair of 3D sound headphones, the audio startup OSSIC has announced this weekend that they are going to shut the company and backers will not get any refunds. The company has raised about $2.7 million on Kickstarter and about $3.2 million on Indiegogo for the OSSIC X headphones. They are said to be perfect for listening to the 3D audio, specially designed for the VR environment.
The company has already shipped some handful of units to their customers in the month of January but they don’t have any funds left for the mass production of the devices for the listeners. The company said that the shortage of funds is the main reason behind the slow start for the VR and high profile startup failures.
A letter which was posted on their website said, “This was obviously not our desired outcome. The team worked exceptionally hard and created a production-ready product that is a technological and performance breakthrough. To fail at the 5 yard-line is a tragedy. We are extremely sorry that we cannot 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.”
In the month of January 2017, the company has received more than 22,000 pre-orders for the OSSIC X headphones and after a year on January 2018, they announced that they had shipped the first units to the 80 backers in their $999 developer tier headphones. The company has already said that they will be entering for the mass production by late spring 2018.
The company said that it required about additional more than $2 million funding in order to deliver all the pre-orders of the existing backlog. Backers seem to be quite upset for not receiving the headphones. Recently, they have joined a group in the Facebook which has over 1,200 users and threatens the company to take action against the team.