
Filmloop "Betrayed By Investors" - reitzensteinm
http://www.techcrunch.com/2007/02/12/filmloop-betrayed-by-investors/
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reitzensteinm
Sounds like a great story, but what's really going on here? Surely there's a
side that isn't presented. Everyone in the comments is talking about how evil
the VC firm is, but the outcome wasn't exactly great for them, either. Their
interests should be at least loosely coupled with those of the founders
(different risk/return rate preferences for sure, but that doesn't make
shutting down promising companies profitable). It's not like they screwed the
founders over and made a tidy profit, from the figures available it was more
like stemming the bleeding of a cash hungry company that wasn't really going
anywhere.

So if what they did is evil, what was their motivation? Killing FilmLoop to
increase the other companies chance of success? Bumping up their fund
statistics by trying to call it a liquidity event? Either could explain the
short deadline for liquidation, which otherwise doesn't really make sense.
Anyone know more about this?

