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takyon writes:

No "3D audio" headphones for you:

A California startup that sought [to] revolutionize audio headphones, promising personalized devices that would produce sound "indistinguishable from reality," has found that raising interest among investors was easier than delivering the goods.

Ossic raised more than $3.2 million in crowdfunding for its Ossic X, which it touted as the "first 3D audio headphones calibrated to you." But after delivering devices to only about 80 investors who'd paid at least $999 to for the "Developer/Innovator" rewards level on Kickstarter, Ossic announced Saturday it had run out of money — leaving the more than 10,000 other backers with nothing but lighter wallets.

"This was obviously not our desired outcome," the company said in a statement. "To fail at the five-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."

Those who paid $199 ("SUPER EARLY BIRD: SAVE $200 (RETAIL $399)") were lucky. Later backers paid $219, $249, or $279.

Don't help crowdfund something unless you can make peace with your "investment" potentially disappearing into the ether.

Also at TechCrunch, Engadget, The San Diego Union-Tribune, and VR And Fun.

Original Submission