June 15, 2005

Counter Cliche: Who’s The Dog in this Scenario?

Counter Cliche:  Who’s The Dog in this Scenario? Fred’s VC cliche of the week is a good one — “If you lie down with dogs, you’ll come up with fleas.” His point is a good and simple one, that VCs shouldn’t take people risks in deals and shouldn’t try to back management teams they have serious concerns about (ethical or otherwise) in the hopes of trying to change the team or change management. The obvious counter cliche is that entrepreneurs run that same risk in accepting capital from less-than-savory venture investors.  An ethically-challenged investor can wreak havoc on a young company, potentially tying the company up with peripheral legal problems or even damaging the company’s attempts at raising future rounds of capital.  So, VCs can be the dog in the scenario as well. But I think there’s a broader counter cliche here, which is that one’s reputation in business is always tied, to some extent, to the company one keeps.  This applies to investors, and also to clients, vendors, and partners.  The appearance of a connection to an unsavory character, even if it’s just an appearance, and even if “unsavory” is in the grey area instead of black-and-white, is almost […]


April 11, 2005

You Heard It Here First, Part II

You Heard It Here First, Part II Tomorrow, Return Path is going to announce that we have acquired the Bonded Sender Program from IronPort Systems (the release is here).  As usual, I’m happy to pre-announce M&A activity on my blog in exchange for a moment of self-promotion. Bonded Sender is the industry’s oldest, best known, and most effective whitelist/accreditation program.  In a nutshell, it’s a bitch for mailers to qualify for it — they have to demonstrate that they’re a super high quality mailer and get certified by our partner TrustE — but once they do, they have relatively guaranteed […]