I think it's pretty easy to take shots from the sidelines. It's fairly obvious that the vast majority of you guys know very little about the start-up environment in Vancouver. We need guys like Danny and Bootup to take some risks in order to develop our ecosystem.
In this case, an error resulted. They didn't want that to happen, but it happened. Crucifying these guys after the fact helps no one.
If there's value in Status.ly, either someone else will step in and fund it or someone will buy it.
Entrepreneurial risk takes many forms.
As for the "slick PR messaging", you guys obviously don't know Danny.
1. Don't intake companies until financing is in the bank.
2. Have agreements for all intake companies before they start. A term sheet is not binding, and frankly, should only be used to reflect the business points in the agreement. Don't rely on it.
3. Recognize that they are dealing with unsophisticated entrepreneurs. Don't try to bullshit them with big words like "capital call." Help them help themselves.
4. Get more people on the board that understand investing. The principals are nice guys, but they are not bankable in the investing world. They need two more people like Boris Wertz on the board, not hide behind some bullshit advisory board.
5. The principals should take finance lessons.
In this case, an error resulted. They didn't want that to happen, but it happened. Crucifying these guys after the fact helps no one.
If there's value in Status.ly, either someone else will step in and fund it or someone will buy it.
Entrepreneurial risk takes many forms.
As for the "slick PR messaging", you guys obviously don't know Danny.