Longtime readers know that I'm a bit obsessed with worthless stock certificates. I like to keep them around and displayed so that I see them on a regular basis. They are a reminder that we make mistakes in the venture business. I think it's a good idea to remind yourself on a regular basis (particularly when markets are like they are now), that everything you touch doesn't turn to gold.
We are moving our offices upstairs to a new office and we've spent a fair bit of time this week cleaning out old files. I came across a big stack of worthless stock certificates from the Flatiron Partners portfolio and thought I'd share one of them with all of you.
Kozmo was a decent idea that actually worked in NYC. But in the mania that existed in 1999, the company raised hundreds of millions and went on a spree opening up something like 18-20 cities. That expansion was largely unsuccessful and the result was that the company went under. We lost our entire investment as did all the other investors.
On a week when we are celebrating lots of good news in the Internet world, I think its useful to also remember what didn't work and why so we don't repeat those mistakes.
Some of what Fred is referencing in "good news in the Internet world" would include LinkedIn's IPO, which rose 80% above the offering price on its first day of trading.
Here's some more info on Kozmo.com if you're interested.
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