Fred Wilson: Hot Potato And Are Failures That "Came Crashing To The Ground"

Justin Shaffer 400x300

Fred Wilson says Justin Shaffer of Hot Potato and Sam Lessin of are “essentially failed” entrepreneurs.

In a story in the New York Observer about a funding bubble forming in the world of startups, Wilson delivers this blow to the two companies:

“It’s not all going great,” Mr. Wilson told The Observer. “You know, companies are failing. A couple of high-flying entrepreneurs came crashing to the ground recently. Justin Shaffer of Hot Potato and Sam Lessin of—both of those companies essentially failed. Both of them ended up ‘selling’ their businesses to Facebook, but those were really just—Facebook wanted to hire those people, and they wrapped it up in a ‘sale.’ But those companies were unsuccessful. They failed. So there is failure out there—like, right in front of us. We can see it.”

One of Hot Potato’s engineers fired back saying, “when the single most important company on the Web considers it worth their while to acquire the product you’re building and the people you’re working alongside the absolute last word that comes to mind is ‘failure’.”

See Also: If Your Startup Can’t Get Money In New York Right Now, There’s Something Wrong With It

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