Re:When a meeting with a VC goes bad (Jobloft)
by webwright on Sunday September 16, 2007 @08:19PM
(#55450)
Is it crazy? YC offers $20k for 2-10%...
It utterly depends on what stage the company is in. If it's a few guys and a prototype, $200k of seed money for 50% isn't necessarily a lousy deal.
And, for the record, it could last quite a while. 3-5 young guys making rice-and-beans money, cheap rent, 2-3 servers at ServerBeach...
The "professor" was insulting and controlling-- he raised the VCs' hackles, which isn't going to move the meeting in the right direction. If he had a problem with the valuation, he should have raised the concern before they'd issued the check. That's bad faith negotiating.
Re:When a meeting with a VC goes bad (Jobloft)
by thisisnotmyname on Saturday September 15, 2007 @10:16PM
(#55105)
I agree. What is more, the professor's show in the board room was so good that it made for highly entertaining TV. If you're going to turn down a $200k, you might as well get some free publicity out of it.
The professor was right on so many levels. That 200K wouldn't last three to four months. Rent, salaries, hardware, etc.
That said, the professor was slightly insulting, but I don't think his position was wrong at all.