VC’s are so clever?
This follows from a rant I have had on twitter about Yplan and how someone may have been stupid and why I would want more data if I was to invest in the founders again ??
I have no data to prove they were stupid but I have the following data:
- Raised $31 million
- Live for 24 months
- Had 70 staff
- $4 acquisition cost per user
- 2500 4.5* reviews on app store
Somone on twitter then said this to me:
“with the quality of investors and brainpower in the biz it’s tough to believe anything went wrong beyond”
So lets make some other quotes about companies that have gone bust:
Mode Media – “The general consensus of the employee base is that there was mismanagement of finances,” said one former company executive
Kior – The lack of people with real operational experience “hurt KiOR a lot,”
Terralliance – All told, the investors had sunk nearly half-a-billion dollars into Terralliance, an astounding sum given the audacity of the company’s aspirations — and the paucity of its accomplishments.
Pets.com – As a result, the firm was selling supplies below cost the entire time.
Canopy Financial – …company management discovered earlier this month financial records provided to investors and lenders that were “fraudulent,” as well as “significant financial and accounting irregularities.
I could go on and on and on.
My concern with Yplan is they made themselves to be a media darling in the UK on the way up and so why don’t they be a media darling now and help the eco system by showing everyone issues so others understand.