Angel investor Ron Conway backs convicted fraudster's Youvebeenboned.com

In the Valley, they call it "dropping the Ron bomb" — when prolific angel investor Ron Conway, a Midas who has touched everything from Google to StumbleUpon, showers cash on a promising startup. His latest bomb target, however, is a bit explosive himself. Ron Hornbaker is the CEO of Foomojo, a stealth startup whose website can be found at the URL www.youvebeenboned.com. Private Equity Hub's Connie Loizos points out that Hornbaker was convicted of extorting AOL users in chat rooms in 1996.

Hornbaker attributed his actions to desperation over his infant daughter's hospital bills. The Valley is a very forgiving place, when there's money to be made. Conway likely bought Hornbaker's story, and saw promise in his new idea; why would he have invested otherwise? But if Foomojo — or Youvebeenboned.com, which may well prove a better name — doesn't take off, the meaning of the phrase "Ron bomb" may change for good.