Lora DiCarlo sold the hype before the vibrator — staff were fired by text in 2022

Lora DiCarlo drew national attention in 2019 when CES rescinded, then reinstated, an award for its Osé vibrator after founder Lora Haddock DiCarlo's open letter accused the show of sexism. By early 2020 it had raised over US$5M, and by early 2022 US$9.2M. Cara Delevingne became co-owner and creative advisor in late 2020, and in spring 2021 the company listed a US$40M valuation cap on the Republic crowdfunding site.

Fortune's Lux Alptraum reports that the much-hyped Osé was not on sale for most of the hype cycle, was released in 2020 and was panned: 2.2 stars on Product Hunt, 2.7 for the Osé 2 on Google. An early employee says the prototype could have been made for about US$60 a unit, but management pushed cost below US$20, which they say stripped features and safety. Revenue peaked at just over US$7M in 2020 against over US$4.2M of SEC-filed debt.

Fulfilment problems surfaced in September 2022 and the website went offline in early November. In October 2022, employees including senior management received texts saying their jobs were terminated immediately, with no severance and, an ex-employee said, health insurance already lapsed. Civil rights complaints alleging a hostile workplace remain open with the Oregon Bureau of Labor and Industries; Haddock DiCarlo denied the allegations.

US$9.2M raised by early 2022; revenue peaked just over US$7M in 2020; SEC filings show over US$4.2M in debt; staff fired by text with no severance

The Osé was promoted as a robotic breakthrough while not being on sale for most of the hype cycle, and reviewers and users rated it poorly once it shipped.

Management reportedly cut target unit cost from about US$60 to under US$20, according to an early employee, which the employee said removed features and safety.

Spending outpaced revenue: SEC filings show over US$4.2M of debt against peak revenue of a little over US$7M in 2020.

The company bet that media coverage and the Delevingne tie-up would lift sales, but one marketing staffer says web sales stayed in the low thousands of dollars a day, far below the US$5M hoped for.

Press attention is not demand. Lora DiCarlo sold the story before it shipped a product, and when the product disappointed, the thin sales and spending left no cushion.

A Republic crowdfunding campaign was withdrawn and investors' cash returned after the CFO/COO left in late 2021, according to Fortune's reporting. A US$1.1M Series A from Centauri Capital and five individuals followed but did not save the business. Fortune says the founder has not shared how the closure came about; she did not respond to its requests. Ten investors were contacted and only one replied, saying he had not known of the shutdown. Allegations come from former employees and open complaints, not court findings.