<![CDATA[Gawker: thefunded.com]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: thefunded.com]]> http://gawker.com/tag/thefundedcom http://gawker.com/tag/thefundedcom <![CDATA[My evening with Elon Musk]]> I confess: I completely missed the Tesla Roadster parked outside when I walked into Joey & Eddie's, the San Francisco watering hole where Valleywag used to hold weekly meetups with readers. But there was no mistaking the guy parked at the bar: It was Elon Musk, the CEO of Tesla Motors. He had driven up to surprise me at the behest of Adeo Ressi, the founder of VC-ratings site TheFunded.com, who was Musk's housemate in college. Matt Marshall, the editor of VentureBeat, also dropped by. Musk pressed a set of keys on me and offered a Tesla test drive; I turned them down. Honestly, I figured I'd crash the thing, and I didn't want to put a further dent in Tesla's already parlous cash balance. But I finally agreed to go for a ride with Marshall. How was it, you ask?

Kind of boring. If you like amusement-park rides, you'll love the Tesla Roadster. If, like me, you sit there calculating the infinetesimal odds that the operator's insurers will allow a rollercoaster to actually pose any real danger to you, you'll hate it. I spent the ride up to Coit Tower and back thinking about how much coal was burned to generate the electricity now being thrummed away by the Roadster's motors.

Back at the bar, Musk was affable enough, considering I've hinted he's taking out his midlife crisis on his employees and may be scheming to take over Tesla Motors completely by running it into bankruptcy. He laughed at the last idea, and then thanked me for the suggestion, saying he hadn't thought of that particular financial maneuver.

Musk still blames cofounder Martin Eberhard for Tesla's current straits. When Tesla raised its fourth round of funding in 2007, Musk says, Eberhard, then CEO, told investors that the Roadster's cost was $65,000, giving it a $25,000 gross margin. "It's right there on the slide, with Martin's name on it!" Musk told me. The company, he adds, was already in the middle of a search for a CEO to replace Eberhard.

A private-equity firm which had invested in Tesla sent some consultants to help Tesla sort out supply-chain issues, and they found that the Roadster's parts actually cost the company $140,000. "We might as well have sent customers $50,000 and saved the bother of making the car," said Musk. Former Flextronics CEO Michael Marks, a Tesla investor, confirmed their findings — and that's when Musk decided to fire Eberhard and replace him temporarily with Marks. Just as now, the company's cash position was running low, and Tesla tapped existing investors for new funding, despite having just raised a round. He revealed none of this at the time, he says, because it would have jeopardized the company's ongoing CEO search. (Not that that worked out particularly well; Musk installed Ze'ev Drori, then replaced him last month.)

That's Musk's version, anyway. I'm skeptical, if only from experience with Musk; when he was running PayPal, I remember him making statements that company insiders told me didn't match the facts. But as he was leaving to drive back to the Valley, Musk mentioned that his divorce from his sci-fi novelist wife Justine was a mutual matter; he got the paperwork in first, but she was getting ready to file papers, too. That, at least, checks out. I'm still not sure if I should trust Musk's account of what led Tesla to these perilous straits. But I do believe now that he's brave enough to drive a Roadster up to San Francisco and deliver it in person.

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<![CDATA[TheFunded offers up documents to EDF's lawyers with a smile]]> Adeo Ressi, founder of TheFunded, an acerbic site where entrepreneurs review venture capitalists, dropped by the office of McDonough Holland & Allen the other day. That law firm represents EDF Ventures, which is the VC firm that's to be avoided unless you're "desperate," according to TheFunded's users. EDF is suing in order to reveal the identity of a critic who posted a poor review of the Michigan-based fund for misrepresentation. A common practice among VCs embarrassed by bad reviews.

Ressi had the cheek to make a little video where he personally delivers the documents EDF requested. He assures the audience that they contain no information that will identify "John Doe," the unnamed defendant in the suit. The smiling Ressi makes a thumbs-up gesture at the end, clearly mocking the litigants. It also suggests that such charming and friendly customer service can be yours if you pay to promote your fund on the site.

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<![CDATA[Michigan VC firm sues anonymous commenter]]> Venture capitalists are rigorously image-conscious — and laughably bad, for the most part, at keeping up appearances. Take EDF Ventures, an obscure Michigan VC firm, which may well have gotten a bum rap on TheFunded.com, a VC-ratings site. After issuing a subpoena to find the identity of the entrepreneur who said the VC firm was "to be avoided unless you are desperate," it has now filed a lawsuit against the anonymous commenter. "If someone lies about you, it isn't right," says Mary Campbell, the firm's founder.

EDF's main factual quibble: The poster claimed to have worked with EDF on "several deals." EDF partner Mike DeVries says the company has never done multiple deals with the same entrepreneur.

Which just goes to show how tone-deaf EDF's legal adventure is. Most venture capitalists love to talk about how they keep entrepreneurs coming back for more. That EDF has never worked with the same entrepreneur twice is a far more damning admission — from the mouth of one of EDF's partners! — than anything written on TheFunded.com. Campbell and DeVries might be able to prove their point, at the cost of further damage to their firm's reputation.

Far better for EDF to have focused on the commenter's claim that EDF's deal terms are harsh. The PE Data Center, a research service, finds that EDF's terms, on balance, favor neither the investor nor the entrepreneur.

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<![CDATA["Desperate" VCs try to squeeze TheFunded.com]]> Michigan-based venture capital firm EDF Ventures issued TheFunded.com a subpoena, asking the VC-ratings site to ID a commenter who wrote that EDF is "to be avoided unless you are desperate.” VentureBeat has a copy of the subpoena. TheFunded CEO Adeo Ressi told entrpreneurs their bitchiest secrets are safe with him. Said Ressi: "TheFunded does not store IP addresses, email addresses, or any other personal information associated with a Member account in any database or any file system operated by the company." Funny, before this, we'd never even heard of EDF Ventures. Now they've established what the PR people call messaging: EDF is an obscure VC firm known mostly for being touchy and litigious. To be avoided unless you are desperate.


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<![CDATA[TheFunded hopes the bridges aren't burned]]> Adeo Ressi hates venture capitalists. His disdain has always showed on his site, TheFunded.com, where wantrepreneurs slam VCs with anonymous posts. Now Ressi hopes the sides can make amends on TheFunded's new ad-supported matchmaking service. [San Jose Mercury News]

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<![CDATA[Entrepreneur coaxed into fawning VC review strikes back]]> jeff_loomans_sierra_ventures.jpgAn anonymous commenter on VC scandal sheet TheFunded.com, with the appropriately frat-boyish screenname "jagrmeister721," has lashed out at Sierra Ventures VC Jeff Loomans. Loomans's portfolio includes Corrigo, Grayboxx, MIOX, Red5 Studios and Zoom Systems. The entrepreneur writes:
Dealing with Jeff Loomans, his dishonesty and malicious behavior for a year and a half has been a headache. In some ways, I am glad to part ways because I have never dealt with someone who seemed to relish petty power-plays and lying on a systematic basis as much as he obviously did.
Sierra had requested that he write a positive review, he says — a common enough practice for VC firms trying to buff their image on TheFunded.com. Be careful what you ask for.

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<![CDATA[Sticks and stones may break VCs' bones, but words just bring out lawyers]]> Turned down by Sand Hill Road investors, only to see them woo your cofounder? Careful there, wantrepreneur. Complaining on rate-the-VC site TheFunded.com might get you sued. VentureBeat reports that in recent week, negative posts about VC firms Dolphin Equity, GreenHills, Matrix, Greycroft and Steamboat Ventures have all come down, quickly replaced by more positive reminiscences of deals well done. TheFunded founder Adeo Ressi blames lawsuits:

TheFunded.com is surprised to learn that venture firms are spending money entrusted to them by their own investors to silence the opinions and constructive criticism of legitimate founders and CEOs.
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<![CDATA[TheFunded.com, Adeo Ressi's VC database-meets-scandal...]]> TheFunded.com, Adeo Ressi's VC database-meets-scandal sheet, is taking steps to avoid being "gamed." Venture capital firms are coaxing entrepreneurs to submit favorable reviews and improve their rankings, much like reporters who browbeat their colleagues to vote for their stories on Digg. [VentureBeat]

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<![CDATA[Intelius has your cell phone number — and is selling it]]> spamThat mobile-phone barrier you've built between yourself and telemarketers is about to crumble. The nice chaps over at Intelius, who provide services like name, address, and Social Security number searches, are compiling an online mobile-phone directory they'll sell to anyone willing to pay them a measly $14.95 a number. They're operating on the philosophy that if you're willing to give your mobile number to the IRS or Domino's, you've opted in to an early-Saturday-morning game of phone tag with telemarketers. The dastardly sorts have ensured that the only way to get off the list is by faxing in a written request alongside an ID card. A fax machine: So low tech, it may just stop the Web 2.0 crowd in their tracks.

The saving grace of Intelius's new directory? It's mostly useless. My boss tried to use it to ID the guy responsible for TheFunded.com, before Adeo Ressi outed himself in the pages of Wired. (Photo by freezelight)

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<![CDATA[TheFunded.com, Adeo Ressi's members-only...]]> TheFunded.com, Adeo Ressi's members-only VC ratings site, now lets users submit details on the terms offered by VCs investing in startups. By publicizing terms, Ressi hopes to get investors to standardize the way they invest, making the process less confusing for entrepreneurs, he told VentureBeat. [TheFunded.com]

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<![CDATA[Fred Wilson to TheFunded's Adeo Ressi: We're not that great]]> bio_fred.jpgVC blogger Fred Wilson isn't pleased with his firm's position on VC ratings site TheFunded.com. Specifically, Wilson doesn't think Union Square Ventures should be ranked so high. "I am flattered by it to some degree," Wilson writes on his blog. "But it bothers me." Here's 100-word version of how Wilson would fix TheFunded.

I didn't see Mike Moritz on the list. Or partners from Accel, Benchmark, Kleiner Perkins, Sequoia, Matrix, Greylock, Venrock. What I saw [was] a list of someday superstars. If TheFunded is going to be a resource we can rely on, Adeo needs to have two tiers of voters: people with real knowledge and others. Categorize the commenters so readers can judge the source, and not display poll results until the sample size is large enough.
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<![CDATA[Wired on TheFunded — the 100-word version]]> If you're like most people, you have no idea what TheFunded.com is. Nor do you care about the secret identity of Ted, the site's founding member. Why should you? Because an anonymous website has turned the tables on the all-powerful, often misbehaved venture capitalists who fund the cool tech innovations you love. The December Wired spells it out, but the tale stretches 45 times the length of this paragraph. I've extracted a PDA version for you.

TheFunded.com, a community site for startups to anonymously review and rank venture capital firms, has given entrepreneurs a peek into the secretive VC industry and a chance to dish about some of the unseemly behavior they've witnessed there. "We have seen distinctive pieces of our business plan end up in marketing materials of a competitor," reads one testimony. Another: "He had his feet up on the table the whole time he was telling us how bad our business is."

The site has 3,150 members. Neither Ted nor TheFunded is beloved by the venture capital community, which is more accustomed to CEOs kissing its butt than kicking its ass. "VCs are taken aback," says one former VC. "The peasants have revolted against them."


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<![CDATA[TheFunded.com founder's Wired fantasy fulfilled]]> The latest issue of Wired devotes pages and pages to Adeo Ressi, the anonymous "Ted" who runs TheFunded.com. Wired worked with Ressi to coordinate his unveiling with the story's publication at Wired.com on Thursday evening. Ressi's thrilled, right? Wrong. He complained at yesterday's event that Wired still didn't give him enough play. His take: He's a hot tech celebrity. His site is a big story. He expected to be this month's cover. Mr. Ressi, your wish is our Photoshop command. Click the thumbnail for full size. Apologies to Wired creative director Scott Dadich, who we're sure would never, ever use ITC Stone Sans Bold on the cover.

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<![CDATA[You just don't understand how important Adeo Ressi is]]> Adeo Ressi wants you to know that he's not just the pseudonymous "Ted," founding member of TheFunded.com, the venture-capitalist rating site. The 6'5" Ressi, who resembles a David Cross/Mr. Clean hybrid, sincerely believes that being "Ted" is a feat which which should be celebrated by having his likeness emblazoned on the nearest mountain. But how's his site doing as a business?

He's not making any money off of it. I asked where he wants it to be in five years. "Owned by a large media company," he replied, only half jokingly. (Hey, he sold Total New York to AOL a couple bubbles ago.) Ressi namechecked Dow Jones as his preferred owner. Meanwhile, he has this little problem where he can't get VC backing. When pressed, he admitted the site is a "charity case," and there's "not enough money to make a living off of it." Still, while a quick QuantCast lookup shows TheFunded far behind Fake Steve Jobs in readership, Ressi thinks he's the man of the moment. His reaction to Wired's 3,500-word feature story in the latest issue? They should have put him on the cover. He's totally serious about that.

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<![CDATA[Did Total New York's founders have a rift?]]> We now know the identity of "Ted," the no-longer mysterious force behind VC ratings site TheFunded.com. He's Adeo Ressi, who cofounded Total New York, an early Web city guide, back in 1994. But where did his "Ted" nickname come from? Ressi revealed to Valleywag that his early users, a group which may have included FuckedCompany founder Philip Kaplan, dubbed him "Ted" to annoy him, since that was the name of Ressi's supposed "nemesis." Now that we know who Ressi is, there's one obvious candidate: Total New York cofounder Ted Werth.

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<![CDATA[TheFunded's "Ted" is Adeo Ressi]]> Why is Adeo Ressi smilling? The serial entrepreneur, now CEO of Game Trust, has pulled one over Sand Hill Road. Through a forwarded Skype phone line, Gmail account, and proxy-registered domain name, he's hidden his secret identity as "Ted," the creator of VC-ratings discussion board TheFunded.com. Now, at a time of his own choosing, staged in sync with a Wired profile, Ressi has outed himself. Which tells us one thing: He's much, much smarter than Fake Steve Jobs blogtard Dan Lyons.

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<![CDATA[A new secret behind TheFunded.com]]> "Ted," the secretive creator of VC-ratings message board TheFunded.com, isn't hard to reach. I called him on his easy-to-find Skype line: 415 992 8801. He was busy getting ready for the $500-a-seat event tonight, held on the Stanford campus, at which he plans to reveal his identity at 6 p.m. We'll all know his real name soon enough. I asked him, instead, where the pseudonym "Ted" came from. He told me that early members of TheFunded.com picked it for him, apparently to annoy him, since it was the name of his nemesis. So who's the Ted who hates "Ted"? Ted Leonsis, the annoying AOL retiree? Ted Dintersmith of Charles River Ventures? Ted Dziuba of sarcastic tech blog Uncov? None of them fit, so I'm hoping you might have a better guess.

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<![CDATA[Philip Kaplan knows who runs TheFunded.com]]> The so-far anonymous creator of TheFunded.com, a message board which lets entrepreneurs rate venture capitalists, is going to unveil himself tonight at an event. New rumors continue to bubble up about who "Ted" might be, as the site's founder is known. One tipster suggested Philip "Pud" Kaplan, the founder of FuckedCompany and AdBrite. Nah — that's not Kaplan's style. When he does something, he signs his name to it. He's transparent, much like his shirt in the above picture. But we do hear that Kaplan knows the secretive entrepreneur's true identity.

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<![CDATA[Who's behind TheFunded.com? Not Jason Calacanis]]> Inc. magazine is digging into the mystery of who's running TheFunded.com, a website which lets entrepreneurs rate venture capitalists. Writer Max Chafkin makes four guesses: Gawker Media publisher and Valleywag emeritus Nick Denton; Digg founder Kevin Rose; Blogger and Twitter founder Evan Williams; and blog blowhard Jason Calacanis. Asked by Chafkin, Calacanis denied being "Ted," the mysterious man behind the site. A curious stance, since until recently, Calacanis was eagerly attempting to take credit for TheFunded.com. Never one for subtlety, he told friends of his plan to leak a rumor to Valleywag that he was behind the site. Alas, no, Jason: You only wish you were clever enough to come up with an idea like TheFunded.com.

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