September 14, 2007

Another bad example

I was reading about yet another terrible example of how not to form, begin, and manage a startup. It is called Spiral Frog. It started with a lot of hoopla and has since degraded into a mess of wasted time and dollars. Any entrepreneur that sees companies like this has got to wonder about the overall knowledge of many investors in the technology space. Here is a link to a story about their recent escapades -

Trying to go public without a website

A few of the things they did poorly

1. They paid themselves 400k+ salaries during development stage.

2. They didn’t do much market research before beginning

3. They didn’t hire people who were truly entrepreneurs and instead had a staff of career execs

4. They spent way too much money on PR and marketing and still have not completed even a beta project

3. Generated a little over $3000 in about 3 years. Hey, a healthy 1k clip.

Here is some more background on the disaster that is Spiral Frog