Your In Entrepreneurial Decisions And Legal Issues In Early Venture Stages Advice That Shouldnt Be Ignored Days or Less Back in 2005, Vaynerchuk contacted his friend Jamie Kaplan and Vaynerchuk’s son, Mark, for a second opinion in writing about their experience of a strange business proposal on the rise over the months before it had even crossed the wire. The pair talked through the details of how Vaynerchuk called into question both the viability or liability of the initial proposal and did nothing but wince at the revelation. In May 2007, a proposal was approved for initial funding, but, within weeks, management thought the scheme was too financially weak to proceed. Vaynerchuk said that they had made a mistake—the company had a few hundred thousand shares—but Kaplan said that the company had never sent money to any of them. Vaynerchuk sued management, claiming that Kaplan had made a big error and that Vaynerchuk was negligent.
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It proceeded to find a second investigator appointed by his son who was to advise: Vaynerchuk’s attorney Kym Rambrell. Accross the court and with the assistance of a jury, he was able to get into the thick of the matter using a series of confidential e-mail exchanges with the company’s two lawyers which were ultimately sealed. The first e-mail exchange comes as a page to anyone not familiar with the book, but the others are some of the most sobering in recent years. With the money coming from six different sources, one of them listed the “project” (apart from “the book”) as one being “the first few months of investor money and all the capital” which should have deposited into the company’s finances by the beginning of March 2002. But, crucially, the second e-mail sent after 9/11 goes back even further: “How much would it take just to get what exactly you wanted if you had a 50 percent stake in the company in 2006?” “Why the 80% stake in the company if 70% is not one of the parameters that determines good investment performance?” read another.
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The book, along with three such exchanges—nearly all of such conversations—were sent within the past year, offering insights into high-risk startups facing similar challenges; over the past two decades the way that money is raised and paid has changed too. The questions raised by the book are not as important to this debate as the ones addressed in some other, safer books by Larry Summers. If the book resonates, Summers may well think the Internet and gambling are too