How to Blow $340MM on Blow

By Venture Capital

I suspect more of these “startup blows millions” stories will be surfacing in the coming months, but a story in today’s SF Chronicle might be hard to top. “How ‘Visionary’ Raised – and Lost – a Fortune” details how John P. Rogers, founder of Pay By Touch(a biometric authentication technology company), went through $340MM of high-profile investor cash.

Pay By Touch is now bankrupt and investors contend in multiple lawsuits that the startup burned cash at a rate of $8 million per month and Rogers’ frequent partying and constant drug abuse impaired his business judgment. Rogers’ suspected drug use apparently led to a hotel-room “intervention” in a Vegas hotel room.

Read the entire story here.

If a VC firm asks to your to pee in a cup before your pitch, you can thank Mr. Rogers.

(On a personal note, I’m glad to see Lance Williams found the time to write a story on someone other than Barry Bonds.)


ACCELERATE YOUR STARTUP LAW KNOWLEDGE!

Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.

Buy the Book on Amazon
startup-lawyer-acceleration-cover
You Might Also Like:  Guy Kawasaki: The Art of Raising Venture Capital, Part Three

Tagged under: