The 'deal' was reversed in that no equity was requested even though some material assistance was provided. If hypothetically a startup was willing and able to continue in Vancouver even without the foreseen investment, the whole episode could have still been net-positive. If the startup was derailed by the detour to Vancouver (as appears to be the Status.ly situation), the whole episode appears net-negative.
If there's not enough cash to make the full investment, and already ~$10K or more has been spent on the companies released from the program, what's the additional 'compensation' amount that would be fair? Airfare back home? Some hypothetical opportunity cost that was forgone based on their hopes in Vancouver?
Jamie might have a legal case but if there's one email where BL reports, and Jamie acknowledges, that the funding is still pending and conditional on other uncertain factors, that case could be shot.
I think the blog posting (the mea culpa) was carefully crafted to avoid taking a stance that could cost them money, but I think it is crystal clear that if the situation had been outlined beforehand (that the money was not on hand) that they would have never made the move.
That's called pre-contractual information, which is supposed to be given freely so the other party realizes the risk. They did nothing to warn them the money was not available at all, and might never become available.
In a court case that would probably have 'legs', even if getting to a judgment would probably cost more than it's worth, and they seem to bank on that not happening. But there are more ways to skin a cat and the internet is a great place to put such things to right.
The way out is to compensate them for the expenses they made that they would not have made if they would have been properly informed beforehand, so that includes the funds to re-locate back to where ever they came from and a sum of several thousand dollars to get started again.
Figure another 5 to 10 grand per founder and you should call it quits and consider the matter settled as good as possible given the circumstances.
If they don't have the cash they could do an iou redeemable a year from now, or when they take on their next round of funding.
You break it, you own it, and a real 'sorry' includes compensation.
We agree about the one email, if that exists it's a different story, but then I think that mea culpa would never have been written, clearly there is a party at fault here, by their own admission.
http://techcrunch.com/2010/04/15/the-curious-case-of-vancouv...
The 'deal' was reversed in that no equity was requested even though some material assistance was provided. If hypothetically a startup was willing and able to continue in Vancouver even without the foreseen investment, the whole episode could have still been net-positive. If the startup was derailed by the detour to Vancouver (as appears to be the Status.ly situation), the whole episode appears net-negative.
If there's not enough cash to make the full investment, and already ~$10K or more has been spent on the companies released from the program, what's the additional 'compensation' amount that would be fair? Airfare back home? Some hypothetical opportunity cost that was forgone based on their hopes in Vancouver?
Jamie might have a legal case but if there's one email where BL reports, and Jamie acknowledges, that the funding is still pending and conditional on other uncertain factors, that case could be shot.