Sramana: During that 10-month time between starting HyTrust and getting funded, you still had living expenses. Did you guys have any financing? How did you live? What did you accomplish with that $200,000? Eric Chiu: We did our own seed financing and followed the classic bootstrapped model. We spent only about half of the money
Sramana: What led you to Hytrust? Eric Chiu: I was running sales and business development for Cemaphore. I was in the process of evaluating some other job offers and different startups and I had the board members from those companies calling me to figure out what decision I had made. During that period one of
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. Eric Chiu is the co-founder and president of HyTrust, a virtualization security company. He has more than 13 years of experience in high-tech management and finance. Most recently he was the VP of sales and business development for Cemaphore Systems. Prior to Cemaphore, he led business
Sramana: A private liquidity exit can be bad if the founder is crucial to the success of the business. I saw a similar situation where the founder did not allow a team to get built around him. I am surprised the investors allowed him to have that liquidity event. They needed to raise money, and
Sramana: Early-stage entrepreneurs are always wondering about the transition from an entrepreneur-run business to an outsider-run business. What are your thoughts? Bill Daniel: My first experience with this was Oracle, when it was a small company known as Relational Software Inc. Larry Ellison is legendary, but in those days he was just Larry. I watched
Sramana: How did the transition between Sergient and AllWebLeads happen? Bill Daniel: I was contacted by Ross Garber, one of the founders at Vignette, who had been contacted by two young guys in their twenties who owned AllWebLeads. They were looking to create a board of directors and had created a profitable company via bootstrapping.
Sramana: How long did you stay at Vignette? Bill Daniel: I left Vignette in 2003. I was there for just over five years. At that point, I took some time off. I spent a year working on my golf game. There is something about starting a company from scratch or working with a fledgling company
Sramana: I definitely remember those days. There were a lot of things happening back then! Bill Daniel: Yes! I remember that we were on Triton Drive in Foster City in a one story building that you would think was an industrial manufacturing building. It had a loft and we put two foosball tables up there