The founder, now an outsider, retains roughly 4 percent of the company, which has since received more venture capital but has yet to turn a profit.Most observers agree that while Friendster might still swing a modest sale, a big acquisition or an IPO is out of the question.He argues that Friendster fizzled not only because it fell victim to mismanagement, but because he embraced a system that is designed to create far more failures than successes.
(NYSE: NWS) two years later for half a billion dollars.
Bloggers attack you, call you "a real asshole" and "a very lucky idiot savant." Former investors badmouth you.
Other entrepreneurs copy your ideas without giving you credit.
It's a point that even some investors are willing to concede.
"Most VC firms have adopted a model where they make 20 investments and have two hits," says Peter Rip, a partner with San Francisco-based Crosslink Capital, which has backed such companies as Good Technology and Ti Vo (NASDAQ: TIVO).And in March, he launched a new bid to make it big on the Web--Socializr, a website that lets users invite people to parties and other events.