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.
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.)
Ryan RobertsPartner
Ryan Roberts is a startup and venture capital attorney and partner at Roberts Zimmerman PLLC with more than two decades of experience advising high‑growth startups and venture capital investors. He is the author of Acceleration: What All Entrepreneurs Must Know About Startup Law and StartupLawyer.com
