Smart Lock Firm Otto Shutting Down After Failed Acquisition

Life of startups can be fraught with peril, especially in the idea-rich Internet of Things space, and smart lock maker Otto has found that out the hard way by falling victim to a business-ending acquisition failure. Otto's product was unique in that it was a fully digital smart lock, unprecedented in a space full of locks with potentially insecure physical backups like old-school key tumblers. This made it all the more painful for founder and CEO Sam Jadallah when he received a call on December 11th saying that Otto's suitor, who he refused to name, was backing out of their agreed deal and would not reconsider or look at other options like an investment. The terms of the deal had kept Otto, which had already put its money on the table, from fundraising or finding other buyers. Otto was left high and dry without enough funds to continue operating and had no choice but to shut down, according to Jadallah.

Jadallah pointed out the firm had already created a large number of its $699 digital smart locks and had them sitting in a warehouse, ready for sale. All that was left at that point was to get the locks out on the store shelves, a step which required contracts and logistics. Without a buyer or enough money to take care of that part on its own, Otto has no way of getting its locks to the public. Jadallah noted that the company is still looking into available options, but with almost all of the employees looking for other work and the company's cash reserves all but drained, things are looking grim.

Failure to launch at the last minute is, as Jadallah noted, a fact of life for startups. Still, there is a market for a product like Otto's, so it's possible that something could change in the near future. Otto is another victim of what was a fairly rough year for the Silicon Valley, with startups telling similar tales to Otto's all too often as investors went through a vastly dynamic year that left most of them too unsure of the future to make big commitments. Even larger tech companies had a rough year, with the political landscape in the United States shifting in significant manner and authorities abroad pursuing them for their own reasons, among other things.

Copyright ©2019 Android Headlines. All Rights Reserved
This post may contain affiliate links. See our privacy policy for more information.
You May Like These
More Like This:
About the Author
2018/10/Daniel-Fuller-2018.jpg

Daniel Fuller

Senior Staff Writer
Daniel has been writing for Android Headlines since 2015, and is one of the site's Senior Staff Writers. He's been living the Android life since 2010, and has been interested in technology of all sorts since childhood. His personal, educational and professional backgrounds in computer science, gaming, literature, and music leave him uniquely equipped to handle a wide range of news topics for the site. These include the likes of machine learning, voice assistants, AI technology development, and hot gaming news in the Android world. Contact him at [email protected]
Android Headlines We Are Hiring Apply Now