Stratos Sells To Ciright One To Keep away from Collapse

Stratos Sells To Ciright One To Avoid Collapse

Stratos isn’t lifeless but. The Michigan-based mostly startup simply signed an settlement with Ciright One LLC to take over the fledging firm. Underneath this settlement, One will handle and fulfill all excellent shopper and business and Thiago Olson, Stratos co-founder, ensures me that Stratos Playing cards will proceed to perform as regular and there’s a plan to return buyer help within the coming weeks.

Phrases of the settlement weren’t disclosed.

With out this settlement, Stratos was dealing with speedy closure. The Stratos co-founders, Olson and Nick Bognar, defined to TechCrunch yesterday that their current spherical of funding had simply fell via the earlier week. They have been left with little choices. This cope with Ciright One began to fall into place yesterday.

Underneath Ciright One’s steerage, the Stratos Card will stay on — at the very least for now.

Ciright One is an affiliate of a personal cellular know-how firm based mostly out of West Conshohocken, Pa. Ciright One can also be constructing a sensible bank card (auto-video enjoying warning) similar to the Stratos Card. The One, because it’s referred to as, launched final month. The One card options the identical hidden buttons because the Stratos and the corporate is providing the cardboard with an analogous worth construction as Stratos: $ninety nine yearly subscription or $169 for 2 years. Even the web sites are comparable.

Again in September Ciright One bought GoNow Applied sciences, a pioneer within the reusable bank card area. Beneath this acquisition Ciright One bought patents and mental property from GoNow. Phrases of this deal weren’t launched.

It’s unclear to me (and perhaps to the Stratos founders, too) if Ciright One will fold Stratos into its present product or, likewise, transition the Ciright One enterprise to underneath the Stratos model. Both approach, it merely doesn’t make sense to maintain each merchandise as is.

This exit is way from the one envisioned by Olson and Bognar once they began Stratos three years in the past, elevating $6.sixty three million alongside the best way. But dealing with collapse, it’s higher than the choice of simply shutting the doorways.

TechCrunch has reached out to Stratos for clarification on the way forward for its remaining staff.