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Well, We Failed – Wattage is shutting down

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Re: Well, We Failed – Wattage is shutting down

#31

Post by joshu »

kamaal wrote: post #29
jeremybell wrote: post #17

There are some questions about the deal we secured to return our investors' money. Without going into the specifics, I can say it was essentially an acquihire. I'm going to another company, and part of that deal allows me to repay our investors in full.

Just wanted to ask how common is it to return money to VC's? Or how is this any different than a bank loan, If the VC doesn't shoulder the risks that come with these kind of projects I wonder what is the value they add. People might as well borrow the money on loan.

That doesn't make sense. Banks don't make unsecured loans of that size.

Re: Well, We Failed – Wattage is shutting down

#32

Post by javajosh »

kamaal wrote: post #29
jeremybell wrote: post #17

There are some questions about the deal we secured to return our investors' money. Without going into the specifics, I can say it was essentially an acquihire. I'm going to another company, and part of that deal allows me to repay our investors in full.

Just wanted to ask how common is it to return money to VC's? Or how is this any different than a bank loan, If the VC doesn't shoulder the risks that come with these kind of projects I wonder what is the value they add. People might as well borrow the money on loan.

That's a good question, but realize that the OP is returning the money to angels, the $250k they got from "friends and family". So, even more than being a standup guy, he's ensuring congeniality with the in-laws. :)

Re: Well, We Failed – Wattage is shutting down

#34

Post by t1m »

You may have failed, Wattage, but you certainly left the place in better shape than you found it!

In a time where a good portion of the industry is helping us click on ads that we would rather not see, you attempted something difficult, different, and with less money than most VC backed start-ups spend on their espresso machine.

I am looking forward to your next venture.

Re: Well, We Failed – Wattage is shutting down

#35

Post by suitcase »

1123581321 wrote: post #10

How did Wattage secure a deal to return its investors money? Presumably they had spent it. Did they arrange a loan on terms that would give the original investors liquidation preferences?

They probably stopped spending their remaining funds once the next round didn't come through.

Re: Well, We Failed – Wattage is shutting down

#38

Post by ryanSrich »

Lord_Zero wrote: post #33

"Having previously raised $250,000 from friends & family" I cant imagine any of my friends or family being able to give me a quarter million.

Right? I see this a lot and it's often an investors first response when asking for small seed rounds: "Well have you considered raising money internally? Ask around your friends and family".

If I had friends and family that could just toss me a $250k I don't think I'd be in this position.

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