Failure, when you are in the Silicon Valley is not a badge of shame but one of honor. CEO of The Tabloid, Redg Snodgrass takes his failure as a stepping stone and an opportunity to learn. The Tabloid has lost all its capital from cofounders like Ballpark Ventures, DN Capital, Steve Schlenker and Steve Pankhurst of Friends Reunited.
The company’s H1-B visa issues have led to face further problems like having investors back out and just missing the golden opportunity of having itself acquired by the City forum site Topix.
What does this company actually do? It creates data for ad targeting by using its insights gained from the personal lives of people. For this, it analyzes wall posts on Facebook and uses their certain keywords to reveal any sign of vice found, which was fun. Sadly, its last and final gossip will be posted today.
This is a reminder for the US to get its startup visa situation fixed. The U.S government had the Tabloid’s visas held for months to a year. This was too long for Topix which was planning on buying the company to wait till it finally pulled away. Investors don’t just look for a good team of potentials. A clear path ahead is another important factor before investing in any company.
However CEO Redg seems to be optimistic regarding the entire issue “I had a guy on the hook for $500,000. We were going to fill the second part of our seed round’s convertible note. Then at the last second he balked.”
He continues “It would have been a great deal. [Topix] would have got a great team, but it didn’t happen, so for the next six months the rest of us are going back to consulting. We need to make some money for a little bit…there’s parties to throw.”