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never talked with VCs, I didn t really know how VCs thought, so it was an education the whole time I didn t even have a mentor No VCs were blogging I didn t know anybody who had started a company I was just flying blind We raised $4 million from CMGI and Bertelsmann Ventures in December of 1999 as our series A We had been self-funded to that point we d survived the first year on $55,000 That got us to a million users, and then we took $4 million I had never seen a term sheet before, I didn t know what I should be negotiating for, I didn t know what I shouldn t be negotiating for So, mistakes were made, but I can t fault myself for that.

The other matrix that is required by XNA is the Projection matrix. You can think of this matrix as the magic thing that maps all points from 3D space into your 2D window, but I would rather like you to see it as the matrix that holds information related to the lens of the camera. Let s first look at Figure 2-2, displaying on the left side the part of a 3D scene that is in sight of a camera, which has, as you can see, the shape of a pyramid. On the right you can find a 2D cross section of this pyramid.

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I didn t know what things I should throw out from the term sheet and the lawyer couldn t tell me The great thing for entrepreneurs these days is that there is so much more information out there than there was in the 90s Any number of people that have gone through this are blogging All sorts of VCs are blogging now There are a lot more books out now You can just do a search and find sample term sheets, for example All things considered, I certainly can t fault the outcome, but I made mistakes along the way The VCs did come in 2 weeks after we took the money and said they wanted to replace me as CEO, which was interesting I was pretty wrapped up ego-wise with the company When you start a company, it s your life.

So you think you are the only one that can run it You think, if you re not around, it will fall apart or at least I did for all of these things It was very difficult for me to separate myself from the company in that way So there was a fight over that for quite a while before I acquiesced, and we brought in a new CEO It turned out that that was very good for the company and, had I been more mature, it would have been a less painful process..

They just want to have their questions answered, and the faster and more completely your program answers those questions, the more money you ll make In many, perhaps most, cases, your application, like DocketWorks, began life as a highly customized program written for a specific company Now you re going to generalize this program to make it work for a number of other companies hopefully, a very large number But how many companies have you worked in or are familiar with that have the same problems and needs as the one using your custom program Does your program satisfy their need for information Will they like your current report formats There are a lot of ways to find out Industrial espionage is a good start Go to the Web and look at the competing products They ll probably have a list of outputs, maybe some reprints of typical reports.

Livingston: You worked at Sun before the startup, right Fletcher: I got to Sun via the acquisition of a startup I was working at, called

Livingston: So you had some startup experience. Fletcher: I had worked at a couple of startups as an engineer before. Livingston: But you didn t have any mentors Fletcher: No. My parents are a fantastic resource; they were both managers at IBM. But, we were all flying blind. You look at a term sheet and it talks about vesting schedules for founders stock, and you have no idea what you should expect and what you should negotiate for. Livingston: How did you feel when the VCs said they wanted to replace you as

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