The 'fake it until you make it' stuff - on reading a lot of the posts here about deals falling apart - seems like a perversion of good startup practice. It's considered a reasonable idea to take a Minimum Viable Product out into the marketplace scarily early and see how it goes, as the only way to really learn what customers want. You can see this idea all over the GSW case. The problem is that this methodology (a) requires the product to actually be "viable" (where it clearly wasn't) and (b) it's a methodology for building a product, not a share price. Also, you do it with small customers, not f***ing Amazon. You have to be ready to work like a dog to make customer #2 or customer #3 see something way better.
What's staggeringly corrupt about it is that GSW never seems to have been that interested in building stuff. Their core product seems to have been replaced by DeliveryBizPro - to the extent that they are kicking (small) goals now, it's using someone else's codebase.
I'm curious about the mechanics of what happens now. I'm sure the court will give them a discount on the financial penalties as is usual, but the likely outcome seems to be millions of dollars worth of penalties and costs against the company and hundreds of thousands or even millions of dollars against Joel and Bane (well deserved). What do you guys see happening here? GSW no longer has this kind of money. Presumably they'll appeal, but what happens? I don't see how this is investable (the NEO punters seem to be waking up to this) and current MC looks only slightly bigger than ASIC's reported $A20M costs, never mind penalties.
I suspect they go bankrupt. The Serbians presumably buy back control of Logo, laughing all the way to the bank.
Also, had to lol at Joel claiming on Twitter/Insta that their problems are from "PR'ing too hard" or whatever.
GSW Price at posting:
29.0¢ Sentiment: Sell Disclosure: Not Held
