Kiko Signals Web 2.0 Way

Last week Kiko had the courage to admit “failure” and close up shop on their online calendaring application by auctioning it off on ebay.

I did something similar in a prior life when I rolled up NewsMonster into Rojo. This allows you to live to fight another day.

I quoted the term failure above because this is by no definition failure. Carpe diem! Sieze the day. These guys had the courage to do what most people only dream of – they stuck their necks out and tried to do their own startup. Bravo!

Turns out their next startup is already funded by Y-combinator:

There’s another encouraging point here for the new generation of web startups. Failure is not a disaster when you’re very light. The total amount raised by Kiko in its existence would be about six months’ salary for a first-rate developer. There’s a good chance they’ll recover most of it by selling their code. They only had one employee besides themselves. So this is not an expensive, acrimonious flameout like used to happen during the Bubble. They tried hard; they made something good; they just happened to get hit by a stray bullet. Ok, so try again. Y Combinator funded their new idea yesterday.

This is a victory for the alternative funding model. Bootstrap, be lean and mean, and don’t take VC (until you’re ready).

I wish more developers would take this route. I’ve known a lot of startups over the years which just put their technology on ice and took it on the chin. Putting it on EBay and finding a buyer can help take a 100% loss and at least make it a bit easier on the founders/investors. This way you can recover 30% or so of the investment and use that to fund the next big thing.



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