So Ben Fitts just released a video on Cryptogulch about his investor pulling out which pushes back his growth plans in a big way.
This has resulted in several dozen emails to me asking if I am said investor and if my confidence in Cryptogulch has changed?
That is really two questions so let me answer both one time so I don’t have to again.
1. Am I the investor? – No, I am not the investor, I never was and have not “invested” in Cryptogulch in any form of equity or debt.
2. Have I lost confidence? – Absolutely not.
Here is were we are at, Ben could just take a shit load of orders and try to let cash flow solve the problem. But if he did this what would happen? Well, he’d end up with a huge back log of unhappy people. Frankly my best guess is that his investor backed out due to his slow growth model in the first place. In other words this investor wanted fast money over smart money.
His investor was doing venture debt, not venture equity, in other words a simple loan with repayment terms. He in the end simply probably didn’t like his time to ROI under Ben’s sane and rational growth model.
I am going to work with Ben over the Holiday to see if we can come up with a way to raise sufficient capital to get things moving in a creative way. I have been known to come up with those types of things.
In any event I am not the investor that backed out. I have been clear from the get go that my relationship with Ben here is as follows.
1. I am an affiliate and earn a small commission for each customer I refer. I have elected to take this commission in mining gear. Meaning the better I do the larger my stake in his success becomes.
2. I am a customer at Cryptogulch in fact I was the first customer, customer 001. I generally never ask anyone to spend money on something I won’t spend it on myself. At this point I have purchased a rig and 6 GPUs from Ben out of pocket.
3. I am a long time personal friend and business partner on many projects with Ben.
4. As to Cryptogulch, in addition to being an affiliate I am an unofficial advisor to Ben and how he advances the company. It is important to note that due to our long time relationship I would be doing this, even if I had no stake in the company. Ben and I do this for each other in a lot of ways. He is part of my very small core network.
So again I am going to try to help Ben develop a path forward with CryptoGulch. I have posted a comment with one proposed solution on his video at YouTube, if you have thoughts about that comment please feel free to email me about it, or comment there.
My view is we will find a way though this period, it is a good problem to have mind you, more customers than you can take and people clamoring to get in as a customer. The fact that Ben is being thoughtful and not taking stupid risks is exactly why I am working with him here, and why I have done so for 19 years.