Otto gets “so close,” but shuts down operations before shipping first smart lock
Digital smart lock company Otto has shut down just 4 months after unveiling its flagship product: a $699 smartphone-connected lock that founder and CEO Sam Jadallah described as a “love child” between a “Swiss watch and a Volvo.”
Otto’s team of 35+ had planned to see the first revenue from the lock in just 4 weeks. Instead, according to Jadallah’s Medium post titled “So Close,” Otto is over — and their prized product is sitting in a warehouse with no one to ship it.
So, what happened?
According to Jadallah, it was a case of runaway funding. Otto signed an agreement with a larger firm to acquire them on December 11th, which “restricted [their] ability to solicit other bids or fundraise” in the interim.