Ask HN: A VC stole my idea. Should I do something about it?
I've sat on this for a few months. I feel like I should get the word out so people stop going to these guys for money. I'm not going to post details of the situation just yet. I was given the "we don't sign NDAs" speech so there was zero protection both ways, but I wouldn't want to go around badmouthing a firm without thinking hard about it.
Their implementation of my business is faring terribly (or the idea was just crap). Also, none of their investments have done well (it's a new firm), and they've turned away a few entrepreneurs that have done great things.
Overall, I'm relieved I didn't take such an unethical person on as a board member. Should I just leave this to karma? I consider it punishment enough that the MP seems to be less than great at choosing investments. What would you do? If you'd publish something, would you be afraid of getting sued or publicly attacked? That's my main hesitation.
Thanks in advance for any advice.
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On the other hand, why'd they prefer someone else do it but not you, when both parties costed them roughly the same?
I have never heard of VCs taking an idea and convincing some programmers to develop it.
Perhaps you should speak to him about it. If they are failing, send a reasonably nice letter asking to work on the project as there are many similarities and you think you could really benefit the project. You would have to swallow your pride, but you might get funding...
Or it was not a viable business in the first place and that is why they are failing (in which case that's karma and you can move on).
Talk to a lawyer, find out the statute of limitations, document everything, then make a note to keep an eye on them. If it seems like they come into some money, go for a settlement or a judgement.
So the only thing you could help other people avoid is something that didn't even hurt you.
Probably not worth the effort and stress worrying about. Put that energy into kicking their ass in the marketplace.
Now forget them and build it the way you think it should be done.
If you're going after a big market, you're going to have competitors. No competitors, no market.
Let's see: Start with Xerox with their first good machine, about 1962. Due to the difficulty of making that technology work and their patents, they had no 'competition' and no good 'substitutes' except, say, carbon paper. "Market"? It was HUGE.
I know someone who had a heart attack and got a stent installed in an artery. Blood wants to clot at the stent, So there's a drug Plavix that helps a lot, really, is essential. Plavix goes for about $7 a day, and there is NO 'competition' or substitute except a clot and death.
Here's the recipe: (1) Find a problem where a much better solution will be very valuable. (2) Do some original R&D to get a much better solution difficult to duplicate or equal. (3) Market the solution with high margins and carry the money to the bank. Difficult to duplicate or equal? One protection is a patent but there can be others, say, some IT software locked up in a server farm. Is such software possible? Actually, yes. Exhibit A: Xerox. Exhibit B: Plavix.
Done.