Disqus Doodlings: Startups, Risk And Reward - Granite Grok

Disqus Doodlings: Startups, Risk And Reward

Brown-ShellIn this article on Scott Brown’s association with GDSI, I noted:

As someone who has worked in a bunch of early stage companies, I can say that GDSI does not fit the mold. How?
a) Because it is a company in search of an exciting idea, rather than an exciting idea in search of funding.
b) Because it offered ‘advisers’ very large stock grants with very short vesting schedules, with Brown’s stock fully vesting between the 4th month and the 12th month after the grant date. (Normal is vesting between the 12th month and the 48th month.)
c) Because the company has been reborn over and over, in a series of mergers and reverse mergers, morphing from a beauty products company to a networking company, to an arms manufacturer, all the while owning no physical plant or patents.
d) Because its real product is the buzz it can generate around news and events to haul in the suckers punters.

Commenter ‘nhcitizen’ took me to task, saying:

Spin it how you want, that is how start ups work. Lots of risk so lots of rewards. I wouldn’t fault someone for trying. Or for their wealth.


StartupsI don’t dispute risk vs reward, or disparage getting wealthy for working hard at a startup. What I dispute is whether GDSI meets any reasonable definition of a startup.

Here are the logos of three companies where I have worked, and where a dedicated, super-smart, core team turned new ideas into practical products, before cashing out and doing it again.

In my response to ‘nhcitizen’, I wrote:

I have worked on the cheap, reaped some rewards, and gone around again at a different startup.

In this game, one’s reputation matters – recruiting people to a poor company or a bad idea does not enhance that reputation.

People that I follow, and people that follow me, to new startups are part of a network of trust which creates, sells, delivers, and maintains, innovative products. Notice I said PRODUCTS – an actual output which becomes profitable.

GDSI has no such record. If Brown ever took his payday, it would be at the expense of some greater fools. I applaud him walking away without cashing in, but I expected him to have the wisdom to stay away in the first place.
THAT is why his goose cannot be uncooked!

I continued:

THIS, GDSI, is NOT a startup where a bright idea seeks funding, and everybody works on the cheap, hoping for a big payoff.

GDSI is a shell company that doesn’t know, and doesn’t care, what it wants to be when it grows up. it is not young, it does not have a bright idea for which they are raising money, except the idea of the prime movers cashing out while the sheeple are buying in.

Brown was either greedy or foolish for getting into bed with such a transparently shady outfit, but they knew exactly what they were doing – cashing in on his name.

Either way, he lay down with those dogs, and he got up with fleas.

I rest my case that a good lawyer who reads the details would not go near this bunch….. therefore, take your pick:

  • Not a good lawyer
  • Didn’t read the details
  • Greedy
  • Stupid
  • In on the scam.

[footnote] I favor “Didn’t read the details” in order to give Brown the benefit of the doubt.

And we would choose such a person as our ambassador to DC, exactly why?

This is why I am so adamant that the GOP Establishment at so many levels is showing disdain for the voters, and a preference for insiders (Brown’s been in the club, y’know), apparently in complete disregard for actual results, as measured against the party platform.

With the “Meet our next Senator” event at the Tuscan Kitchen this Monday (tomorrow), one has to wonder what the featured dish will be…. Turkey on the half shell? Washed down with Tom’s new concoction of “Papa pimp Smurf“?

Further reading on the topic: “Scott Brown, The F-Word, & The Game of 9?s

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