After a sudden downfall last year that left high-tech football helmet maker Vicis out of cash and no longer in business, a New York City investment firm has purchased the assets of the failed Seattle startup out of receivership, with plans to form a new company.

Innovatus Capital Partners paid $2.85 million for Vicis’ assets following a three-month process to salvage what was left of the company, according to King County Superior Court records. In October, Innovatus made a $18 million investment in Litchfield, Il.-based Schutt, one of the leading U.S. football helmet manufacturers and a Vicis rival.

“Under new ownership from Innovatus Capital Partners, Vicis and our assets will form a new company in order to fulfill our mission of protecting athletes of all ages,” a message reads on Vicis’ website. “Together, we will continue to apply our passion and expertise in engineering, medicine, and sport to elevate the game for this season and many to come.”

Court documents show that Innovatus was the only bidder for Vicis’ assets, even though acquisition inquiries were sent to more than 100 potential buyers. Innovatus originally agreed to pay $3.1 million but negotiated a cheaper price due to uncertainty with the COVID-19 outbreak.

One source close to the receivership process said many investors balked at making an offer due to the complicated nature of the helmet manufacturing process, especially for groups with little industry expertise. The COVID-19 outbreak was also a factor in discouraging bids. Investors are more cautious with their spending, and it’s unclear when football at all levels will be allowed given the social distancing mandates put in place.

Court filings also show that Riddell, the top U.S. football helmet manufacturer, threatened to sue Vicis last month over alleged patent infringement. Riddell and Schutt have fought over patents for more than a decade as both aim to build a better football helmet amid ongoing concerns about player safety.

Vicis was a one-time Seattle startup standout that raised in excess of $85 million from more than 400 investors after spinning out of the University of Washington in 2014. Top engineers and medical experts developed a helmet with multiple, specialized layers built to mitigate the impacts believed to cause concussions.

Last year the company had more than 20 NFL teams with a starter who wore its helmet, and 180 college programs had deals with Vicis. The company also made inroads with youth football. Its youth helmet ranked first in Virginia Tech’s inaugural youth football helmet safety ratings by a significant margin and was named to Time Magazine’s 100 Best Inventions of 2019. Vicis also repeatedly placed first in the NFL’s helmet safety test and discussed plans to build helmets for other sports.

But as GeekWire previously reported, the company ran into several problems over the past few years. Insiders say the company put too much focus on grabbing market share from incumbents such as Riddell and Schutt, rather than turning a profit. The troubles came as a surprise to some shareholders. Vicis was unable to raise more cash before shutting down the company and laying off more than 100 employees in December.

Vicis reported $13.8 million in revenue last year, with a net loss of $28.8 million, according to receivership documents. The startup had more than $10 million in pre-receivership liabilities.

Vicis backers — who lost their investments — included current and former NFL players Aaron Rodgers, Russell Wilson, Doug Baldwin, Alex Smith, Roger Staubach, and Jerry Rice. Other backers included prominent spine and neurological surgeons; Cincinnati Reds minority owner Harry Fath; angelMD; W Fund; Alliance of Angels; and Trilogy Equity Partners.

Vicis was founded by Per Reinhall, chair of the UW’s mechanical engineering department; Samuel Browd, professor of neurological surgery at the UW; and former CEO Dave Marver, who stepped down in November. UW engineering professor Jonathan Posner is another co-founder; he left the company in 2015.

Reinhall told GeekWire that he’s satisfied with an industry leader taking over Vicis’ assets.

“It is devastating that all the investors lost their money,” Reinhall said. “But from a technical perspective, I’m happy to see the product live on. Sam [Browd] and I are very committed to making football and other fast-moving sports safer.”

We’ve reached out to Innovatus and will update this story when we have more details.