Comments on: VC firm Worldview Technology Partners closes shop; the “three strikes” rule

By: SG

SG — Wed, 02 Aug 2006 12:18:42 +0000

Ask Spreng how he expects to raise a new fund after existing LP Starling sued Crescendo for gross negligence and mis-representation?

By: Some Concerned LPs

Some Concerned LPs — Mon, 31 Jul 2006 21:16:56 +0000

Some facts–also on Thomson Finl, PE Weekly, Venture Economics, etc.–to cut to the chase in this:

James Wei: NVidia, Broadcom and several other hits. Colin Savage and Tim Weingarten: FineGround, IntruVert, and others that sold for more than they raised.Not great but ok.
Mike Orsak: Fifteen+ years experience as a venture investor. Name one company he invested in that has lived ten years. Seven years? Five? The answer is: None. Name one success. None. Consider now the busts: Snowball, MetaTools (which became MetaCreations and now Viewpoint), Cosine,numerous others including acquisitions sold for less than money in. With his Midas Touch entrepreneurs don’t need competitors and investors tech recessions to kill them. Ergo Worldview’s predicament.

Last year Orsak said he was taking on a reduced role (see PE Weekly and VentureAlert). It disturbs he is still on the website as a GP and on board of companies placing them at risk.

Credit the journalists and their professionalism for picking up on this.

By: Entrepreneur CEO

Entrepreneur CEO — Mon, 31 Jul 2006 19:49:03 +0000

I do not have insight into the Worldview LP dynamics. They have to live and die by results as we all do in this competitive industry. We have a series A investment from Worldview. I must say they have been very supportive of the company. We have a great board member from World View – who is one among the smartest people I have ever met. All of the other Worldview partners including James Wei have always seemed upstanding and smart. I will not say much more, lest it sound arising from a self serving agenda.

By: Nice Ventures Blog

Nice Ventures Blog — Mon, 31 Jul 2006 15:13:20 +0000

Summary of Hot News from last Week

I have escaped last week from the record heat here in Europe into the Swiss mountains. Now some hot news also showed up, following a selected list:The Skype founders are on it again as Business Week Online reports. This time TV peer-to-peer in a venture d

By: Cosine

Cosine — Mon, 31 Jul 2006 14:09:16 +0000

In response to Jane’s comment, how large was your survey sample size? As a former exec at Cosine, I thought Spreng was far from knowledgeable and was slow to make mgmt changes. In fact, his lack of ability to distinguish facts from Hamilton’s BS caused us to make several bad decisions. I hold him partially at fault for Cosine’s demise.

By: jfco

jfco — Mon, 31 Jul 2006 14:05:13 +0000

C*O, what can you share about the financial returns of those deals you worked on while with Worldview?

I don’t know if others here understand that of 34 companies invested from Worldview IV, 19 are alive but most living dead. 5 died. 10 were acquired but here’s the kicker, only 3 for (little) more than the total money that went in.

Explains why investors said more than “Ouch!”

By: C*O

C*O — Mon, 31 Jul 2006 13:48:46 +0000

I too worked with Worldview and Mike for several years, and would like to chime in. Unlike some others here I don’t depend on Mike or Worldview for business and have no need to sing their song.

Mike and I extracted maximum value from troubled situations and shared some with management that cooperated compliantly. This process always made Mike a hero to management and consultants (and they sing his song) and for a while his partners and LPs. Employees and other investors in those companies were left by the wayside.

The tech collapse created a few of those difficult situations. Most however were created or worsened by Mike’s involvement. We parted ways over the diving catches, strikeouts, and differences in opinion over the ethics and morality of our actions.

Worldview’s LPs finally woke up. Their decision to not invest is unambiguous about Worldview and Mike.

By: ATabibian

ATabibian — Mon, 31 Jul 2006 12:39:56 +0000

Having working with Worldview and specifically Mike Orsak in instances involving both troubled companies and successful ones, I saw nothing whatsoever that would support the negative comments on Worldview and Mike. What I saw was calm, logical, supportive and realistic given each circumstance.

By: Just Learning

Just Learning — Sun, 30 Jul 2006 12:00:15 +0000

Does anyone know what role John Boyle played in Worldview’s demise and what he is doing now?

By: Technology

Technology — Sun, 30 Jul 2006 09:55:43 +0000

Technology

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By: Matt Marshall

Matt Marshall — Sat, 29 Jul 2006 10:45:59 +0000

Upset LP:

Thanks, finally, for providing some specifics (only one positive exit since March 2000). At least now we can take this to other side and ask them about it.

By: Upset LP

Upset LP — Sat, 29 Jul 2006 10:15:02 +0000

I find your reporting of David Spreng comment quite annoying. As an unfortunate LP of their 4th fund, I am frankly sick of getting repeated quarterly updates from Crescendo stating things are turning the corner but nothing materializes in the following quarter. All the promises of the prior quarter disappears the next quarter; instead, they are replaced by a new batch of upbeat possibilities. These promises certainly causes me to question Spreng’s ethics. Bottom line, since the fund’s final close in March 2000, there has been only one positive exit with very trivial amt of return, and the GP that did that investment is no longer with them. Again, I dont know what he means by “doing well” – perhaps he himself is doing well as the ex-GPs that I spoke with expressed deep displeasures with division of economics at Crescendo.

By: JB

JB — Sat, 29 Jul 2006 10:07:15 +0000

It is disappointing some are accusing the journalists now for reporting “sensational”, “factually incorrect information.” The journalists did a good job in correcting a minor glitch quickly and reporting facts, not agendas. Who is disputing the following facts they reported?

After several months of trying to raise a fund Worldview pulled it. General partners, principals and other employees left the firm over the last two years. Mike Orsak’s role in the firm changed last winter. His own statements and admissions to the press confirm he doesn’t support the firm’s growth and success and did not cooperate in raising a new fund. Worldview III and IV are very much underwater and not likely to see air. Media professionals witnessed partners yelling and screaming at one another.

What does this say? Big changes needed for investors in current funds to invest remaining funds, pay management fees, and support partner paychecks and lifestyles.

Some commended Worldview partners they worked with. Credit where credit due. Why are a few getting worked up, accusing the media of false reporting to show support for someone who was central to the current mess? support him without accusing the world of bias and slander.

By: Matt Masrshall

Matt Masrshall — Sat, 29 Jul 2006 09:43:01 +0000

WDMitch: You are right that Worldview isn’t literally closing its doors. But if the firm can’t raise a new fund, or decide not to raise one, it is pretty much through in terms of making investments into brand new companies, and thus the jargon “closing doors” slipped into my post — there’s an understanding of what that means in the venture industry, but I should have been clearer nonetheless. I updated my post clearly (in bold) about this before your comment.

By: LLL60

LLL60 — Sat, 29 Jul 2006 09:16:52 +0000

It is quite distrubing to see that people would report factually incorrect information. Get your facts straight before you write anything!!!
Bashing people’s reputation is a big NO NO. What is being perceived is arrogance is not a crime. What is a crime is when someone is being unethical.
In this case, people slandering a person’s good reputation is a crime.
My personal dealings with Orsak has been very solid and he’s a very ethical man in a world where many people are not.