Posted by unregistered user at 1/22/08 6:52 a.m.

Well done Cleverset!

Posted by unregistered user at 1/22/08 7:32 a.m.

At least it's a "in the black" sale (i.e. they didn't raise $100m and sell for $25m like Aventail). But if this is the best that most VC-backed startups can do, expect to see more small angel-funded businesses with a neat idea build a "1.0" of their product and then sell quick. So if you're not a founder or 1st employee, it's hardly worth the risk, since your payoff will be pennies.

I suppose that's OK, but it's a big change from how startups operated in the past 15 years or so, and I wonder what the impact will be as fewer "employees" cycle in and out of these growth companies.

Posted by unregistered user at 1/22/08 7:53 a.m.

Congratulations Todd! Nice base hit. :-)

Posted by unregistered user at 1/22/08 8:35 a.m.

#88820 above shows a lakc of understanding behind angel investing. The expectation isn't that every investment will return 10x, 20x or whatever you believe.

The point of angel investing is to have enough investments on the table, so the chances for a big return are real. You'll get some small returns (like this one) and quite a few total losses. In balance, you expect that the risk/return is in line with the risk part. You have to have enough in play to make that happen.

Posted by unregistered user at 1/22/08 9:44 a.m.

Anybody have data on the ownership distribution of CleverSet? What share do the $3 million investors own? How about CEO? Founder(s)?

Posted by unregistered user at 1/22/08 10:38 a.m.

Where are they on the sampa list of web traffic?

Posted by unregistered user at 1/22/08 10:50 a.m.

Hey #88861? I understand angel investing just fine.

Since 8 or 9 out of 10 startups fail, the payout has to be at least 10x to be worth the risk (assuming you invested an equal amount in 10 startups). Returning 3x would seem to make angel or VC investing far to risky for the expected return. Remember, it's not 3x for 8 startups and 10x for some. It's 0 for 8-9 startups and (you hope) 10x or 100x for 1.

If all you're looking for is a 3x return, find a couple individual stocks to make semi-risky bets on.

At least angels don't suck all the equity out of a company like early-stage VC companies do. So perhaps the 18 employees actually got a little cash bonus.

Posted by unregistered user at 1/22/08 10:57 a.m.

#88925

Your logic is missing a key part, namely, of the 8 or 9 that "fail", one benefits when one of them don't fail completely but instead turn a 1, 2 or 3x return. The 1 that hits it big is great...but there is no logic to suggest that hitting it big or nothing are the only two possible results. In fact, that's illogic.

Getting a 3X return is infinitely superior than getting a 0x return -- when there was always the chance of a 30X return. Get it?

Posted by unregistered user at 1/22/08 1:23 p.m.

John,

You neglected to mention the relationship of ATG & other northwest companies; ATG acquired Primus Knowledge Solutions back in 2004.

-LT

Posted by unregistered user at 1/22/08 2:25 p.m.

Good work Todd!

I know you were out there working hard on CleverSet and did the right thing. Hope to see what your next deal will bring... Best, Tim Reha

Posted by pthomas at 1/22/08 2:44 p.m.

Congrats, guys!

-pete

Posted by Jason Grimes at 1/22/08 5:13 p.m.

Congrats Todd & crew! Well done.

Posted by samrd at 1/23/08 10:39 a.m.

This is evidence of a well run, well operated company who is putting the best interest of the shareholders and employees first--what a breath of fresh air. In the black and paying out. Good work, Todd.