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.)