This is, indirectly, such a fascinating, cautionary, and ironic story about how difficult it is to do early-stage investing (read: incubation) that I’d suggest people read the whole thing:
The high-profile investors in the infamous and short-lived incubator 12 Entrepreneuring are witnessing the end of a chapter.
According to documents obtained by PE Week, nearly all of the assets of Grand Central Communications-one of three companies launched by 12 Entrepreneuring-are about to go to the highest bidder. The minimum acceptable “all cash” bid for the assets? A mere $250,000.
That’s a fraction of the $50 million Grand Central had raised over three rounds from the likes of Marc Benioff, CEO of Salesforce.com, Marc Andreessen, co-founder of Netscape, Tim O’Reilly, founder and president of O’Reilly & Associates, and Richard Bergmann, CEO of SymphonyRPM.
Mind you, one of the assets of Grand Central is a service called Swivel, of which I’ve been a beta user. It’s nice, and I’m guessing that it’s the whole pinata in the 12E auction.