Death By Venture Capital – Angel & Venture Capital Part III

Many Startups fail caused by Death by Venture Capital. Here's the deal. Imagine you are a parent. You have three kids. You don't give a crap about the kids as individuals. You take a portfolio approach to the family.  It doesn't matter what happens to any of the kids individually as long as one of them grows up to cure cancer, it's a win! The other two could wind up dead or in jail, but the portfolio of kids is highly profitable. Venture Capital is like that, except VC's eat their children...

youngStartup Ventures – Pretangel Alert

I just received a LinkedIn invite from Alan Levinson of youngStartup Ventures: Alan Levinson Hi Glen- wanted to know if you're seeking venture funding. If so, let me know if you'd like details about applying to present as one of the Top Innovators at The 2018 New York Venture Summit on July 10th & 11th at Convene. Email DesperateStupidFounder@youngstartup.com for more info. Regards Alan When I got this message, I went through the following thought process: Does this clown read? Can't he tell that I'm not likely to be raising money and if I tried, no one would fund me? Then I thought, I love New York, maybe I should apply to speak at the conference. Wait...

Matthew Pugsley is a conman and he Strikes Again

Matthew Pugsley is a conman. Not everyone knows this about him as evidenced by a phone call I just had with a friend. This buddy, who shall remain nameless, was recently at a cocktail party where he met a guy who had no idea Matthew Pugsley is a conman. Over drinks and small talk their conversation went something like this: Sucker: "So what do you do?" Friend: "I'm a Venture Capitlist." Sucker: "Really? I just made my first venture investment." Friend: "In what company?" Sucker: "A little company called Chalant Health. I don't know much about it or how they're doing but my boss invested six figures." <Awkward Silence as Friend struggles not to lose his drink through his nose> Friend: "You know you might want to google them." Hey Sucker, let me google that for you! Try this link. See how easy that was? Do you know what you would have learned had you done that before you stroked a check? Matthew Pugsley is a conman. Let me make this perfectly clear, Pugsley ain't no businessman. Pugsley ain't no saint. Pugsley ain't no upstanding citizen. Matthew Pugsley is a conman, and Chalant Health is a house of cards. This isn't Matt's first con. This isn't Matt's first company from which he embezzled...

Angel Investing Is Broken Part 1

Angel Investing is Broken and there are multiple factors that cooked the Goose that was never really golden. To evaluate the change, let's look back in history. In the 1990s there was a much higher bar to start a company. Every bozo with an idea did not get to call themselves a founder. To start a company, real capital was required. There was no cloud, so software founders were forced to use real cash, $100's of thousands of dollars on expensive computer equipment. There was no open source so software had to be developed from scratch costing more time, man-hours and mullah. The infrastructure didn't exist to facilitate a geographically dispersed team which meant that products were developed with expensive in-house, on-shore resources. The result? In the 90s if you couldn't raise $6 million from a Venture Capital firm, you were a dreamer and not a founder. This meant that few companies with similar ideas got off the ground, the competition was limited and a Venture Capital blessing significantly increased the odds of a win. In the 1990s, raising six million dollars was a serious barrier to entry to enter a market. Just the fact of raising enough money to build a product made the...

3Si’s Team – The Best and The Brightest?

In a recent interview, Master Venture Capitalist and our Generation's Warren Buffett, Jason Feimster (please don't sue me Warren) described the 3Si team and I quote: “We’ve got about twenty. The majority of which are engineers, PhDs from top-tier universities and the like given, you know, that we do show preference to technology. We have a very competent and I’m very proud of our legal team. You know that does the legal due diligence and then last but not least, we focus on the financials. You know our CFO senior investment officer, etc." Let's do a little due diligence on the 3Si Team. Below is a picture of the 3Si team as it appears today. [caption id="attachment_77550" align="aligncenter" width="632"] 3Si Team[/caption] Partners Jason Feimster - Managing Partner - Yup, he appears to be the only person who actually is employed by 3Si "Hard L" Weinstock - Senior Partner - Lists 3SI on his LinkedIn profile but no one I've talked to who has had any dealings with 3Si has ever met Hard. Technology Sardar Mohazzam -Chief Technology Officer - Lives and works in Pakistan and lists 4 current jobs including 3Si Bill Sadler - Engineering Advisor - Is not an advisor, has no formal relationship...

Jason Feimster How Venture Capital Works

Jason Feimster, Jason Feimster, Jason Feimster. While I so want to pick up a new topic. You keep leaving me nuggets of lunacy that I can't ignore. Now Jason, unlike you, I've never been a VC. But also unlike you, I've worked for VCs, pitched and successfully raised money from VCs and have exits that made money for VCs. So let me coach you on some VC-dom basics. There's a problem if you've never pitched a real Venture Capitalists (VC), and if you're not a real VC.  It's very difficult to pretend you're one. There is so much stuff you don't understand. Pretending to be a VC after never being a part of or ever witnessing a real Venture Capital process is difficult. It's like putting a caveman in a helicopter and expecting them to be able to pretend they can fly it. They don't even know helicopters fly. For instance: Jason Feimster, when you ask a prospective "portfolio company" founder to sign an NDA? Come on silly, Real VC's don't sign NDAs. Consultants do. Real VC's don't learn their trade watching Shark Tank. In videos of Jason (I've included a bunch herein), Jason mimicks the sharks. Maybe you'll understand this...

3Si Phony VC

Everyone Who Knows Anything, Knows 3Si Phony VC is a Sham. Well, everyone except the local tech rags. With them, when it comes to that "knowing" thing, there appears to be a problem. These Tech "journalists" either don't know much or don't care about sharing letting what they know to get in the way of a story on deadline. The problem in DC is that too many of the "journalists" at rags like Technically DC and DCInno simply reprint bullshit without doing research. So when they post an article like this one, "WeWork’s veterans-in-residence program expands to DC," by Technically DC or this one, "The 10 Entrepreneurs in WeWork’s First D.C. Veterans in Residence Program," by DCInno the damage the very ecosystem of which they claim to be supporters. I reached out to one, count them, one, of the listed "Team Members" on the 3Si Web Page to ask about his relationship with 3Si. His response, "I Read your 3Si expo. I’m unfortunately linked with them and can’t seem to distance myself. One of the comments you posted came from my client. I Also have a second client that 3Si attempted to screw." I'm no journalist, yet, in doing a modest amount of research I...

3Si Jason Feimster part 3

My 3Si introduction was in early 2017 when a friend, let's call him Joe, called me about a VC he was speaking with. I had been advising this friend for years. He's a great guy and in the last five years, he has been diligently building a great company that serves a social good. I love this guy (yes DC, Mr. Cranky doesn't hate everyone). Joe had recently pitched at a local venture capital pitch event where he met a big-time Venture Capitalist interested to invest in Joe's company. They had follow-up meetings after the event and 3Si confirmed they were hot to invest. I asked who he was speaking with at 3Si and he said, Jason Feimster. That was how Jason Feimster and 3Si first popped up on my radar screen. I told Joe I would do a little research and get back to him. I checked Angel List, checked Crunchbase, checked the 3Si website and all the data pointed to bullshit. The only portfolio company was a small company called Lifemarkers that had no investors with the exception of 3Si. The two principals of 3Si, Hard Weinstock, and Jason Feimster were the founders and management team of both Lifemarkers and...