Cloudmine on seed funding: "this was the 'you are now homeless' goal" - Technical.ly Philly

Business

May 25, 2012 11:30 am

Cloudmine on seed funding: “this was the ‘you are now homeless’ goal”

CloudMine cofounder Brendan McCorkle explains the near “valley of death” experience his company encountered as they sought a first round of seed funding and how he found help in the Philly tech community, in a guest post for FounderDating: “In the middle of all this, I recalled a conversation I had with Derek [Kleinow] about […]

CloudMine cofounder Brendan McCorkle explains the near “valley of death” experience his company encountered as they sought a first round of seed funding and how he found help in the Philly tech community, in a guest post for FounderDating:

“In the middle of all this, I recalled a conversation I had with Derek [Kleinow] about the hiring of our first two engineers. We were speaking about the strategic value of hiring engineers before we were “ready” financially. Essentially, this was a conversation about calculated risk. I remember he told me: “Let me be clear: I like how you think about this strategically. If the round takes too long, I won’t let you guys get in trouble.” Derek was opening the door for a later conversation, but at the time I didn’t take him too seriously because, of course, we didn’t think we’d need help.

Fast-forward a bit, and we were in desperate need of help. How serious was Derek? Would he actually front money from a round that hadn’t closed with no guarantee attached? I put off the call because I didn’t know how to ask for what we needed. I didn’t want him to say ‘no.’ I wasn’t ready for rejection but I really had no other viable options. With dread in the pit of my stomach, I called him and started: “We’re in trouble…”

-30-
CONTRIBUTE TO THE
JOURNALISM FUND

Already a contributor? Sign in here
Connect with companies from the Technical.ly community
New call-to-action

Advertisement

An artist development agency in Fishtown just launched a music industry how-to platform

A decentralized web, data on diversity and other smart ideas for bolstering journalism’s future

Hey, remote workers: Philly has a holiday party made just for you this year

SPONSORED

Philly

How ShopRunner’s mentorship program is pushing its employees to think beyond their fields

Philadelphia, PA - Center City

Odessa

Sr. Project Manager – ERP Implementations

Apply Now

Chesterbrook, PA

Deacom

Senior Software Developer

Apply Now

Philadelphia, PA

Vistar Media

QA Engineer

Apply Now

When a health condition threatens your tech career

SAP just opened a cyber defense center at its Newtown Square HQ

Optimism and best practices at Philly Startup Leaders’ revamped diversity event

Philadelphia, PA - Center City

Odessa

Business Architect

Apply Now

Horsham, PA

Penn Mutual

Agile Coach

Apply Now

Philadelphia

Inspire

Manager, People Operations

Apply Now

Sign-up for daily news updates from Technical.ly Philadelphia

Do NOT follow this link or you will be banned from the site!