What happened to Geosign?
Posted by Simon on January 08, 2008 at 10:12 PM
Gary just published his latest Waterloo Tech Digest and his article about Geosign got me curious. An interesting analysis is in this article from TheStreet.com:
American Capital Start-Up Stake Unwinds.


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The interesting parts of that article were 1) American Capital saying that it got a "substantial" part of its investment back. That's new information. We don't know how much yet, but I think we might soon. 2) apparently someone at Moxy Media talked to TheStreet.com. Might not have said much—there are no direct quotes and not much content attributed to the Moxy Media VP—but it looks like he at least said something.
To people running startups, I would use Geosign as an example of what not to do in media/public relations. By clamming up as they did, they just encouraged wild speculation, including at least two bloggers wondering if it was all some con job. I don't believe that, and I wouldn't be surprised if Moxy Media is actually doing okay, but the company desperately needed some PR help and either didn't ask for it or didn't listen.
Yeah, so what does substantial mean they got back at least 50%? In cash? I suppose that for a VC deal that's not the WORST possible outcome.
At this point, "substantial" can mean pretty much whatever American Capital wants it to mean.
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