[mratzloff]

I'm confused. Did they protect kids? I don't remember if he said that or not.

Anyway, a few comments:

- They paid for free users with no business model in place

- They failed to complete requirements of their previous investment deals

- Handshakes don't matter, term sheets don't matter; nothing matters until the check clears

[rexreed]

Startups should print out those last three bullets, frame it, and put it on the wall. It would save a lot of heartache.

[BrandonWatson]

We had a business model. We knew when we would start charging. We were already testing pricing when the VC round was underway.

We did not get the D&O. That was as much a legal representation screw up than my own failing. I was the CEO, so the ultimate blame lays at my feet.

Term sheets don't matter, but one thing that is getting lost in all of this is that we had definitive docs. We had been given keys to the VC office to take up positions as residents until we had office space. Money from other investors was already in escrow. It's not like we got a signed termsheet and moved. We signed the termsheet in Sept, moved through definitive docs until Nov, and it all fell apart in mid-late Nov. It sucked.