Subject: Re: Thoughts on GPL
From: Michael Tiemann <>
Date: Wed, 25 Feb 1998 08:58:04 -0800

    That is an accounting fiction.  Having accepted the money you are
    operating under the imperative of that ROI demand.

In general, you are probably correct.  The specifics of our case is
different, however.

Let's look at two timeframes, before VC and after VC investment.  I
claim that if we can get anywhere near the ROI after the VC investment
that we accomplished before the investment, we're doing great.

Proof: Cygnus was started with $6000 cash, and 7 years later, we
received a $6.25M cash investment.  I won't tell what % of the company
we sold for that amount, but in worst case, let's pretend it was 100%.
That's a 1000x ROI.  If we can do that in the next 7 years, we'll have a
$6 _billion_ dollar valuation!

Back to reality...we've always been acting on the imperitive of ROI, the
VCs came on board as an evolutionary step to making Cygnus a more
attractive company to a wider group of people.  Most companies that take
VC have a zero or hugely negative ROI when they take money.  Cygnus was
_very_ different.