Entrepreneurs Get Creative to Get Funding

Re:Entrepreneurs Get Creative to Get Funding by leelin on Thursday October 15, 2009 @04:05PM (#884167)

I'm guessing it's a mistake in the article. End of Summer was not too long ago, so a company with about $500K in the bank should be worth more than $270K premoney.

I just thought of another explanation: Maybe the TV show only airs if a deal gets done, so the founder reasoned the publicity was worth a bad valuation?

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Re:Entrepreneurs Get Creative to Get Funding by joez on Thursday October 15, 2009 @07:51PM (#884483)

I doubt the part of accepting the money for publicity. I think they get plenty for just being on a nationally syndicated show. (Kudos to them on WSJ and Shark Tank) They might have even gotten better publicity for standing firm on their original offer.

http://www.youtube.com/watch?v=SOSfMzwA5C0

They accepted an offer with a 6 month buy out clause so it is possible they never intended on keeping the money.

I just have major doubts about their numbers. The way the founders present them is very suave but thinking deeper in is really questionable.

Other highlights from the show are in: They had 40% of University of Arizona (about 14k users) in 8th months.

30k revenue in 1 year.

Not exactly a smashing success, but a start. Just a few doubts when examining them deeper.

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