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Brandon Watson talks frankly about his startup and its investors

• AndrewWarner 17y ago
  Here's a quick(ish) summary: * He was able to raise about $1 MM in 8 days because he built up good relations with investors over the years. * He didn't get as good a deal as he could have from his investors because: as a first time entrepreneur he didn't have enough leverage + he needed to move fast + he didn't want to lose the deal. * His board pushed him to sacrifice revenue for growth. * Lack of revenue forced him to seek another round of funding. * When, at the last minute, a VC dropped his deal, all the others walked away too. * When he sold his company, his investors made a small profit, but he was "flushed out" because of the deal he made when he got his funding. Bottom line: He protected his investors. His investors protected themselves. No one went out of their way to protect him, the entrepreneur. Still, none of this soured him on entrepreneurship.
  • helveticaman 17y ago
    Well, hopefully now on his second attempt he gets better leverage on the deal.
• sutro 17y ago
  Nice interview, nutpuncher!
  • BrandonWatson 17y ago
    I know someone is reading my blog posts when they use that phrase...awesome!
    • sutro 17y ago
      Haven't read your blog, but I did read your reply to me on this site yesterday. I'm sure your blog is a literary masterpiece if it makes liberal use of the term "nutpunch."
• phony_identity 17y ago
  Someone must know who this first tier VC was that hosed him. Anybody here know about this?
  • BrandonWatson 17y ago
    One day I will post the story...one day.
    • herdrick 17y ago
      We'll be waiting! Thanks for the great interview, Brandon.