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Your Resource in Business Law INSIDE THIS ISSUE 1 2 Should You Hire Financial Help?
A Business to Help You Find More Time
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When Good Ideas Go Bad
WHEN GOOD IDEAS GO BAD Credit Card Startup, Plastc, Fails to Launch
What happens when a good idea, turned into a viable
In April 2017, Plastc filed for bankruptcy and closed its doors for good. After raising $9 million, Plastc delivered nothing. The creators behind Plastc say things fell apart behind the scenes. The company had expected another $3.5 million in funding from various sources by February 2017, but that didn’t happen. Then, they said they were on the cusp of another $6.75 million from an additional source. That too, didn’t happen. Apparently, $9 million raised from the initial 80,000 backers was not enough. The card hadn’t even gone into production. None of those 80,000 had anything to show for their contribution. Many backers demanded a refund, but since Plastc revealed they were completely out of money, the chance of getting that refund was slim. What can we learn from Plastc’s failure? Quite simply: money and a good idea aren’t enough to be successful. You have to execute, or you will have nothing. So always be doing something.
concept, comes crashing down? In October 2014, Plastc was unveiled. It was
a progressive approach to credit card technology. The device — little more than an actual credit card — was designed to replace all of your existing cards, up to 20 different accounts. The single card held the information of the rest of your cards and you could switch between cards as needed. With a built-in e-ink screen, you could see which card was active and swipe. The technology came with a price: $155. But that price didn’t get you a Plastc card right away. In October 2014, the card was still a concept that needed crowdfunded support. Turning to social media, Plastc quickly found that support. About 80,000 people pledged $155 for the chance to get a card the following summer, in 2015.
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