Far from backers celebrating anything like a fourfold payout after Micron bought Virtensys, it turns out the sad reality is that Virtensys was close to collapse and Micron is buying the ashes of a crashed startup. Stockholders will get nothing as the firm avoided a disastrous implosion by the skin of its teeth. The picture we …
It's called *venture* capital for a reason.
It's good to see no one is running to the USG for a bailout like those whiny little bankers.
Assets acquired, team more or less in tact and an owner who *believes* in it enough to make it work.
Sad for the investors but no real disaster.
Not a complete disaster, no, but from one perspective not a great ending:
It's not necessarily a only a venture capital funded company. In most startups, there are also Founder investors/employees. These are the people who are likely to to have put significant personal funds into the company, and can be the greatest loosers when a 'fire sale' occurrs. Though their individual financial contribution amounts may look like peanuts to a VC, they have invested time, sweat, tears and occasionally blood to make the company take off to start with, and may be left with next to nothing. The core/founder team, in many cases, will have been made redundant/voted out by the time a company reaches the fire sale point, because the initial development (the very expensive bit, especially in ASIC design) has been done, and the company needs to cut burn rate drastically. So the original skills and knowledge may have disspeared out of the company some time ago.....
Ho hum - at least it wasn't Holographic Storage ;-)
"highly creditable" indeed!
A company realized that the product line without the actual know-how that created it is next to useless? A company realized the useful employees are not _always_ those in the top two tiers? Wow! Thoughtful capitalism as counter-capitalism? More please...
I think I know what happened.
There is another article somewhere on the internet with the title of:
HELP MY BOSS IS A PSYCHOPATH!
Turns out many companies hire these people because they are risk takers.
They are the ones who at work are the fake alpha males who put you down every moment they can get.
Truth is they are the same ones who kill companies. GoldmanSachs.... yeah they fired a few of those psychos and who ever hires them will soon feel the pain.
In all trufulnees these people need to take their meds.
How many things can you share or abstract
before the box in the middle is empty?
I think this article misses one crucial point, the product didn't actually work! It never was a switch, you still had to put a switch in front of the virtensys kit in order to access any SAN based storage.
Also, best practice would dictate having 2 Virtensys units for redundancy but if either failed it caused your host to BSOD/PSOD. Nice!