4 ms·

As a Boston native, I have spoken with multiple people who worked for / knew people who worked for karma loop. It (was?) a company that grew in spite of its cul

by seibelj 10y ago

As a Boston native, I have spoken with multiple people who worked for / knew people who worked for karma loop. It (was?) a company that grew in spite of its culture / founder. Lots of drinking, open drug use, sex in the office, etc. Apparently the parties were wild, though!

karmakarma1 10y ago
I am very sympathetic to the founder, and he made a lot of very bad decisions (that he admits) but ultimately, the reputation coming out of karma loop locally was that they were way in over their heads and a dumpster fire. I think this cautionary tale is important and worth reading, but taking on a bad loan wasn't the only issue they faced. The other side of the fence has a private equity company realizing they may have just entered into a world of chaos and taking the steps they felt necessary to protect what capital they could. Not understanding the repercussions of the financial moves you are making on the company's future may be an indication as to the general sloppiness of which the company is conducted.
mouzogu 10y ago
You've just slandered an entire company based on third party information. Unless you witnessed it yourself.
- seibelj 10y ago
  It's also described in various articles about the company, if you want to read more. I post with an account linked to my real life persona and I stand by what I say.
  - mouzogu 10y ago
    I'm not questioning the veracity of the claim but rather the generalisation made of an entire company. For what it's worth an online article is still a third party source just like the friends you mentioned. Surprised that I got voted down so much. All I am saying is that sweeping generalisations based on information one has not witnessed is wrong. Is that so bad?
    - powera 10y ago
      You did accuse someone of "slander" for saying something which has been repeatedly reported. Also, http://smbc-comics.com/index.php?id=4105 http://smbc-comics.com/index.php?id=4105
      - mouzogu 10y ago
        Sorry, I tried to change the word "slander" as I didn't realise it was offensive. There does not seem to be a way to edit comments. In any case my intention was not to be insulting or accusatory. It is just that from my previous work experiences when hearsay is passed around they become almost impossible to dispel - the onus of proof falls on the accused as opposed to the accuser(s).
- mikeyouse 10y ago
  Here's a sourced article with the exact same claims: > “We were a ratchet crowd,” said one. “There were afterparties in our office where people were having sex, there were drugs being done. That company has done so many crazy things that a movie should be made about it.” http://www.complex.com/style/the-rise-and-fall-of-karmaloop http://www.complex.com/style/the-rise-and-fall-of-karmaloop Breathe easy, nobody was wrongly slandered.
powera 10y ago
More on the culture: "Instances of employees drinking so much that they slept in their offices or under their desks weren’t unusual. Drug use was rampant. Marijuana use was commonplace and, according to multiple former employees, there were even times when managers offered employees cocaine. “It was a regular thing,” said one former staffer who spent five years at Karmaloop." http://www.complex.com/style/the-rise-and-fall-of-karmaloop http://www.complex.com/style/the-rise-and-fall-of-karmaloop
- emodendroket 10y ago
  I don't understand what they're saying right before that: "Employees were expected to take care of business—drinking on the job or getting high was not tolerated—but things changed come quitting time." Things got wild when people quit?
  - eightofdiamonds 10y ago
    I think they mean after work hours, not actually quitting the job.
    - emodendroket 10y ago
      Oh. Well that makes sense but I'm not sure why they'd word it that way.
jeffasinger 10y ago
I work with some people who worked at Karmaloop. I've heard that it simultaneously was a great place to work (plenty of challenge and room for growth), but also a terrible place to work (bonuses paid out in virtual currency, very poor product management, etc.)
selkoe 10y ago
Really who do you know? Because Comvest helped spread that around at time of filing and it is not true they have a whole way of spinning story..while I couldn't say anything against it under threat of $6mm dollar garuntee they said they wouldn't enforce if I kept quiet. We built an eCommerce company that did over $100mm a year for 5 years, and was profitable for 6 years you really think it was a roman orgy in the office? Did we have wild parties once a quarter yes? But other than that we worked hard and focused... Secondly, of course we had lawyers look at docs unethical lender have laws in Deleware that are completely one sided in banks favor.. The truth is you can sign away right for future wrong doing by your lender.. Believe me I have tried ever angle to get around this so I could not just defend myself but counter suit..I will cover in future posts... It is unfortunate my fellow entrepreneurs would buy such nonsense but . We had 240 emlpoyees all in 20's and 30's we had as much drug use as any company that employees people that age.. Hubspot.. People love to sensationalize things but I think this group is smarter than that, come on guys! I decided to share to be helpful to others and exspose Comvest .. Who incedently just lost their right to enforce by summary judgment their garuantee against me and judge ordered trial as she felt there was enough evidence they acted badly she could not just uphold the contract.. So I fight on! But also work on new stuff right here at YC happy to provide insight around this topic or any others.. I built a company that did roughly $1 billion in revenue over the 15 years I ran it and started it out of my parents Basment ..I did it once so I learned a lot and always happy to share and help!

by seibelj 10y ago

karmakarma1 10y ago

I am very sympathetic to the founder, and he made a lot of very bad decisions (that he admits) but ultimately, the reputation coming out of karma loop locally was that they were way in over their heads and a dumpster fire. I think this cautionary tale is important and worth reading, but taking on a bad loan wasn't the only issue they faced. The other side of the fence has a private equity company realizing they may have just entered into a world of chaos and taking the steps they felt necessary to protect what capital they could. Not understanding the repercussions of the financial moves you are making on the company's future may be an indication as to the general sloppiness of which the company is conducted.

mouzogu 10y ago

You've just slandered an entire company based on third party information. Unless you witnessed it yourself.

seibelj 10y ago
It's also described in various articles about the company, if you want to read more. I post with an account linked to my real life persona and I stand by what I say.
- mouzogu 10y ago
  I'm not questioning the veracity of the claim but rather the generalisation made of an entire company. For what it's worth an online article is still a third party source just like the friends you mentioned. Surprised that I got voted down so much. All I am saying is that sweeping generalisations based on information one has not witnessed is wrong. Is that so bad?
  - powera 10y ago
    You did accuse someone of "slander" for saying something which has been repeatedly reported. Also, http://smbc-comics.com/index.php?id=4105 http://smbc-comics.com/index.php?id=4105
    - mouzogu 10y ago
      Sorry, I tried to change the word "slander" as I didn't realise it was offensive. There does not seem to be a way to edit comments. In any case my intention was not to be insulting or accusatory. It is just that from my previous work experiences when hearsay is passed around they become almost impossible to dispel - the onus of proof falls on the accused as opposed to the accuser(s).
mikeyouse 10y ago
Here's a sourced article with the exact same claims: > “We were a ratchet crowd,” said one. “There were afterparties in our office where people were having sex, there were drugs being done. That company has done so many crazy things that a movie should be made about it.” http://www.complex.com/style/the-rise-and-fall-of-karmaloop http://www.complex.com/style/the-rise-and-fall-of-karmaloop Breathe easy, nobody was wrongly slandered.

powera 10y ago

More on the culture: "Instances of employees drinking so much that they slept in their offices or under their desks weren’t unusual. Drug use was rampant. Marijuana use was commonplace and, according to multiple former employees, there were even times when managers offered employees cocaine. “It was a regular thing,” said one former staffer who spent five years at Karmaloop." http://www.complex.com/style/the-rise-and-fall-of-karmaloop http://www.complex.com/style/the-rise-and-fall-of-karmaloop

emodendroket 10y ago
I don't understand what they're saying right before that: "Employees were expected to take care of business—drinking on the job or getting high was not tolerated—but things changed come quitting time." Things got wild when people quit?
- eightofdiamonds 10y ago
  I think they mean after work hours, not actually quitting the job.
  - emodendroket 10y ago
    Oh. Well that makes sense but I'm not sure why they'd word it that way.

jeffasinger 10y ago

I work with some people who worked at Karmaloop. I've heard that it simultaneously was a great place to work (plenty of challenge and room for growth), but also a terrible place to work (bonuses paid out in virtual currency, very poor product management, etc.)

selkoe 10y ago

Really who do you know? Because Comvest helped spread that around at time of filing and it is not true they have a whole way of spinning story..while I couldn't say anything against it under threat of $6mm dollar garuntee they said they wouldn't enforce if I kept quiet. We built an eCommerce company that did over $100mm a year for 5 years, and was profitable for 6 years you really think it was a roman orgy in the office? Did we have wild parties once a quarter yes? But other than that we worked hard and focused... Secondly, of course we had lawyers look at docs unethical lender have laws in Deleware that are completely one sided in banks favor.. The truth is you can sign away right for future wrong doing by your lender.. Believe me I have tried ever angle to get around this so I could not just defend myself but counter suit..I will cover in future posts... It is unfortunate my fellow entrepreneurs would buy such nonsense but . We had 240 emlpoyees all in 20's and 30's we had as much drug use as any company that employees people that age.. Hubspot.. People love to sensationalize things but I think this group is smarter than that, come on guys! I decided to share to be helpful to others and exspose Comvest .. Who incedently just lost their right to enforce by summary judgment their garuantee against me and judge ordered trial as she felt there was enough evidence they acted badly she could not just uphold the contract.. So I fight on! But also work on new stuff right here at YC happy to provide insight around this topic or any others.. I built a company that did roughly $1 billion in revenue over the 15 years I ran it and started it out of my parents Basment ..I did it once so I learned a lot and always happy to share and help!