Posts Tagged ‘cashburn’

Lotus In The Fire

Friday, November 21st, 2008

It’s an ancient metaphor at least 2500 years old. Yet it is so apt today. The DOW has careened around 7500 all day, jumping in the last half hour to 8000 on the news of Obama’s pick for Treasury Secretary. If it weren’t for that bit of news, it would have been a terrible day for investors on Wall Street. Sumner Redstone had a margin call. The CEO of AIG had a margin call. Just about everyone I know is lamenting the loss of at least 40 percent of their investment portfolio in the past 6 months. Maybe fire is too gentle a word for this lotus. Maybe Lotus in the conflagration is better.

What is the lotus in this flaming financial hell? My clients are alive and well in Seattle and San Francisco. Everyone is facing financial turmoil. An online game company had it’s B round erased by the credit crunch a month ago. They restrutured, regrouped, and now have raised capital from the orginal investors and a few ballsy new investors to buy time to get to cashflow positive in the near future. A tech company with a huge cashburn has pushed for and attained an enviable client list and found strong interest in several large acquirers who remain undaunted by all the financial carnage around them. A hosting company that survived the bloodbath that killed Exodus, PSInet, and other hosting companies now finds itself completely sold out of capacity and yet unable to finance an expansion, and so they have decided to hunker down and optimize their client list for profitability. A startup that launched a clever social merchandising application on facebook less than a year ago finds its current investors skittish. The team has regrouped and is finding solid interest from new investors who like the progress to date.

The entrepreneurial spirit in this sector is the lotus in the fire. Not one of the CEOs i work with have given up. Not one of them has shown any willingness to concede. Everyone has had their mettle tested and are showing their ability to keep their eyes on the prize. It is a privilege to work with them and a privilege to watch such people of great character and intestinal fortitude driving for a win in the midst of such a storm.

Who says we are a nation of whinerse? I say bullshit. We are a nation of hard driven men and women willing to batte lwith self-doubt and a naysayers and high odds against us in order to have a shot at winning tomorrow.

The lotus in the fire is a beautiful sight