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Saying things like "Now Techstars has lost complete credibility in my mind" is taking things too far and just being petty. Techstars doesn't market itself as s

Saying things like "Now Techstars has lost complete credibility in my mind" is taking things too far and just being petty. Techstars doesn't market itself as some bastion of credibility to consumers. Yes, this a great example of what not to do when you know your company is doomed, and the founders are killing their long-term prospects of future ventures with all this bad karma, but there's no need to drag Techstars into it.

tptacek 12y ago
Not to mention: there's not a whole lot Techstars can even do about this. They're a minority investor and their involvement is limited to the first few months of company operation. This comes up every once in awhile with YC, too.
- nedwin 12y ago
  Legally not a whole lot they can do, and not sure about any other kind of obligation, but hopefully they're reaching out to the founder to make sure she's OK and help get this mess sorted out.
- hawkice 12y ago
  I initially completely agreed, but now I'm less sure. I used to mentor someone, and if he was found using skills I taught him to act fraudulently, I would accept partial responsibility. Obviously Techstars can't force people to stop shenanigans, but I hope for a society where we expect more of each other, where behaving ethically is not more or less important that profits but simply completely necessary. I'm not sure I can, in good conscience, condemn someone for expecting more of a renowned institution, however minor that renown is. I also think that the author of this post is in a place to understand what is possible and expected of investors, given she is an Operating Partner at Khosla Ventures.
djtidau 12y ago
I think the basic idea behind the assertion is that someone coming out of Techstars should know better, either due to the fact they have smart/savvy enough to be accepted in the first place or that they have been provided with enough information to make decent decisions like shutting a site down when the business has folded. Techstars may not market themselves as a measure of credibility, but i'm sure it is something they care deeply about. If an incubator constantly spat out startups making deeply questionable decisions like this one they would have far less startups knocking on their door.
Retra 12y ago
Doesn't everybody market themselves as a "bastion of credibility?" From their website: "Techstars provides [...] intensive mentorship, and an amazing network of mentors [...]" Seems like they are all about credibility.
lstyls 12y ago
>> "there's no need to drag Techstars into it" Techstars and/or its affiliates would have taken equity in exchange for their services. They're part owners of the company as as such bear some measure of responsibility for its actions. >> "Techstars doesn't market itself as some bastion of credibility to consumers." Yes it does. It's consumers are small startups in need of seed money and strategic advice. Brand name is very important, and one of any incubator/accelerator's selling points. If a startup can associate itself with a highly regarded seed brand like YC or Andressen-Horowitz it makes its valuations much higher down the line. If Techstars becomes associated with shady ventures, it will hurt its ability to find willing participants.
- gumby 12y ago
  Do they take a board seat? It's the responsibility of the board to make sure a company is shut down responsibly (once it's insolvent it needs to be run for the benefit of the debt holders FIRST, and part of that is not adding new liabilities).

tptacek 12y ago

Not to mention: there's not a whole lot Techstars can even do about this. They're a minority investor and their involvement is limited to the first few months of company operation. This comes up every once in awhile with YC, too.

nedwin 12y ago
Legally not a whole lot they can do, and not sure about any other kind of obligation, but hopefully they're reaching out to the founder to make sure she's OK and help get this mess sorted out.
hawkice 12y ago
I initially completely agreed, but now I'm less sure. I used to mentor someone, and if he was found using skills I taught him to act fraudulently, I would accept partial responsibility. Obviously Techstars can't force people to stop shenanigans, but I hope for a society where we expect more of each other, where behaving ethically is not more or less important that profits but simply completely necessary. I'm not sure I can, in good conscience, condemn someone for expecting more of a renowned institution, however minor that renown is. I also think that the author of this post is in a place to understand what is possible and expected of investors, given she is an Operating Partner at Khosla Ventures.

djtidau 12y ago

I think the basic idea behind the assertion is that someone coming out of Techstars should know better, either due to the fact they have smart/savvy enough to be accepted in the first place or that they have been provided with enough information to make decent decisions like shutting a site down when the business has folded. Techstars may not market themselves as a measure of credibility, but i'm sure it is something they care deeply about. If an incubator constantly spat out startups making deeply questionable decisions like this one they would have far less startups knocking on their door.

Retra 12y ago

Doesn't everybody market themselves as a "bastion of credibility?" From their website: "Techstars provides [...] intensive mentorship, and an amazing network of mentors [...]" Seems like they are all about credibility.

lstyls 12y ago

>> "there's no need to drag Techstars into it" Techstars and/or its affiliates would have taken equity in exchange for their services. They're part owners of the company as as such bear some measure of responsibility for its actions. >> "Techstars doesn't market itself as some bastion of credibility to consumers." Yes it does. It's consumers are small startups in need of seed money and strategic advice. Brand name is very important, and one of any incubator/accelerator's selling points. If a startup can associate itself with a highly regarded seed brand like YC or Andressen-Horowitz it makes its valuations much higher down the line. If Techstars becomes associated with shady ventures, it will hurt its ability to find willing participants.

gumby 12y ago
Do they take a board seat? It's the responsibility of the board to make sure a company is shut down responsibly (once it's insolvent it needs to be run for the benefit of the debt holders FIRST, and part of that is not adding new liabilities).