Euclid 2003
Posted by Mark Nelson on 3rd March 2010 | Permanent Link
Euclid Discoveries has been raising money, fear, and loathing for so long now that they feel to me like a lifelong friend.
I was working my through some old emails last week and I came across an angry message from a Euclid supporter sent all the way back in 2003. Gray Smith is one of the Kentucky investors that have been mentioned here so often, and he took offense at some of my skepticism, firing off this email:
Mark -
Sorry, but you will soon be eating your “E words” regarding Euclid Discoveries. And, unfortunately, your reasoning on the subject is so far off-base that I’m forced to discount everything else you’ve ever said.
Regarding the business model and funding strategies, can you think of one example of a small tech enterprise that survived venture capitalism or hand-holding with the likes of, say, Microsoft? Can you say “Hotmail”?
Secondly, the principals of Euclid have sat on the MP3 standards committee for a number of years. Their product will hit the market compatible with every existing application, and will be the sole property of the principals and investors.
Do some homework. The PR firm handling their publicity (and their patent firm) are the premiere [sic] firm(s) in the niche. They don’t take on losers. And they’ve seen the demo.
Have a nice day.
Gray Smith
You’ll note that Gray is using several of the key strategies Euclid supporters have engaged in since the beginning:
- Attack the messenger instead of debating the facts: “your reasoning on the subject is so far off-base that I’m forced to discount everything else you’ve ever said.”
- Claim legitimacy by association - by virtue of hiring a PR firm, ED suddenly is imbued with some sort of goodness, because PR firms only accept payment from companies that are really going somewhere.
- Confuse business relationships with technical skill. Getting on the MP3 standards committee is not like getting into the Rock and Roll Hall of Fame. It is not an endorsement by your peers. It is an indication that you are capable of filling out an application form and sending it in with a check that doesn’t bounce.
And yes, Gray, I can think of many small tech companies that have survived venture capitalism or hand-holding with the likes of, say, Microsoft? Can you say “YouTube?”
Gray is apparently still working at the same company in Louisville that he was back in 2003, so I sent him an email asking if he had an update on how soon I would be eating my words.
So far, no response.
- Mark
March 3rd, 2010 at 4:35 pm
First, all these big name banks, lawyers and PR firms care about only one thing, and that is how much money they can safely get.
Second, banks, lawyers and PR firms do not create compression software. So their presence says nothing about how well Euclid’s programming skills.
Third, if the money was in GICs or Government bonds then at-least there would have been some interest to collect.
And as I said before, if the finance companies knew what they were doing how did we end up in this economic mess.