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As HN's resident (and sole?) idealist, this line really disappointed me: > “We love these guys, and it sucks to see this happen to them, but we can’t sign up f

As HN's resident (and sole?) idealist, this line really disappointed me: > “We love these guys, and it sucks to see this happen to them, but we can’t sign up for a lawsuit.” I understand the logic behind it, but it still seems sort of weak to not stick your neck out when it really matters, and then turn around and write a blog post about how awful it all was after the fact. In these guys' shoes, honestly, if I had something that was potentially that big, and that well-developed, I wouldn't be able to walk away from it. I'd at least look up the list of Patent Cooperation Treaty countries (http://www.uspto.gov/web/offices/pac/dapp/pctstate.html http://www.uspto.gov/web/offices/pac/dapp/pctstate.html) and consider moving to a country that wasn't on it (like Chile), and launching from there.

lionhearted 16y ago
> I understand the logic behind it, but it still seems sort of weak to not stick your neck out when it really matters, and then turn around and write a blog post about how awful it all was after the fact. Most likely he has limited partners who have given him money to invest, so it's not just his own money. The company is almost certainly less likely to make it now - they could lose the suit, and then it's over. But even if they win, that's a massive mental beatdown and stress and such for quite a while. Not to mention costs. It sucks all the way around, but an investor with limited partners can't back something that doesn't fit with the goals/metrics/risk that they promised when their LP's signed up.
jc123 16y ago
Interesting idea moving to another country; since they were looking to raise funds it's probably tough to convince the same investors to invest in the new foreign startup.
- nikcub 16y ago
  Modern investors are a lot more sophisticated than they were a few years ago in regards to where a startup is incorporated and where it operates from. Angel investing and earlier rounds take place anywhere, it is only when larger funds get involved do VCs only tend to invest within a few zipcodes of their own location. Fred Wilson has blogged about this extensively - he considers his fund to be global, as do many other angel and super-seed investors.

lionhearted 16y ago

> I understand the logic behind it, but it still seems sort of weak to not stick your neck out when it really matters, and then turn around and write a blog post about how awful it all was after the fact. Most likely he has limited partners who have given him money to invest, so it's not just his own money. The company is almost certainly less likely to make it now - they could lose the suit, and then it's over. But even if they win, that's a massive mental beatdown and stress and such for quite a while. Not to mention costs. It sucks all the way around, but an investor with limited partners can't back something that doesn't fit with the goals/metrics/risk that they promised when their LP's signed up.

jc123 16y ago

Interesting idea moving to another country; since they were looking to raise funds it's probably tough to convince the same investors to invest in the new foreign startup.

nikcub 16y ago
Modern investors are a lot more sophisticated than they were a few years ago in regards to where a startup is incorporated and where it operates from. Angel investing and earlier rounds take place anywhere, it is only when larger funds get involved do VCs only tend to invest within a few zipcodes of their own location. Fred Wilson has blogged about this extensively - he considers his fund to be global, as do many other angel and super-seed investors.