Plastiq
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Plastiq was a San Francisco fintech founded in 2012 that let businesses pay virtually any bill by credit card — even where cards weren't accepted — earning rewards while optimizing cash flow. Its buyer-funded B2B payments platform served small and midsize businesses with bill pay and instant access to working capital. The company raised $226 million, was valued at $480 million, and employed about 200 people.
02 / Plastiq FAILURE REASONS
Failure reasons
Plastiq collapsed under the weight of its own leverage. A planned SPAC merger with Colonnade was terminated before closing, cutting off an expected capital infusion; the March 2023 collapse of Silicon Valley Bank — reportedly a key banking partner — then triggered a liquidity crisis. With secured lenders (Blue Torch) pressing and no new capital available, the heavily funded but unprofitable company filed for Chapter 11 protection in May 2023.
03 / EVENT HISTORY
Events in the structured record
- Founded
Plastiq is founded in San Francisco, letting businesses pay bills by credit card; raises $226M over its lifetime at a $480M valuation.
- SPAC deal terminated; SVB collapses
The Colonnade SPAC merger is terminated pre-petition; Silicon Valley Bank's collapse in March 2023 triggers Plastiq's liquidity crisis.
- Chapter 11 bankruptcy
On May 24, 2023, Plastiq files voluntary Chapter 11 petitions in Delaware. Priority Technology Holdings, already its payment-processing partner, signs as stalking-horse bidder.
- Assets sold to Priority
On July 31, 2023, Priority completes the acquisition of substantially all of Plastiq's assets for ~$37M ($28.5M cash); the business continues as 'Plastiq, Powered by Priority.'
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / AFTERMATH
Aftermath
Plastiq's service continued without interruption under Priority, which folded the buyer-funded bill-pay product into its B2B payments suite alongside its own supplier-funded offering. For the original Plastiq, Inc., the outcome was a near-total wipeout: a $480M-valued, $226M-funded fintech sold for $37M in a bankruptcy auction — a stark illustration of how quickly leverage and a banking crisis can unwind a payments company.