Not a Recovery Story

8 05 2010

I used to work for a startup that provides tools (software) for medical/pharmaceutical research. We managed to survive the dot-com bubble and its aftermath. The company was on its way to being profitable, however, the current economic crisis seems to have had a bigger impact than the dot-com bubble bursting.

Recently, I got an info about the company needing to sell most of its stock on fairly bad terms in order to survive. This being a tech startup, large percentage of the shares were  Common Stock already purchased by current and ex- employees, plus there were still many outstanding Common Stock options. That stock is getting diluted to pennies for a dollar, which will surely kill the morale of many long time employees.

Some things that are mentioned as contributing to current bad condition of that company are: “decreased research”  and “healthcare reform”. Great work Nancy, Harry and Barack — that is some kind of health care reform that you brewed – one that negatively impacts companies in medical/pharmaceutical research. But who needs some fancy-schmancy new drugs while we have Aspirin.

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