I Cannot Think Of Even One Bank/Vulture Lender Relationship

Mattersight is truly some kind of special….

I did about 30 seconds of looking in our own archives, and I cannot find a single lender from whom Mattersight, and before it, old legacy eLoyalty… DID NOT request a series of waivers, before the affected lender… walked away (that’s the mid-2012 version; several since then) — but always with a large cash exit fee….

Names like:

Sutter-Hill Ventures

Technology Crossover Ventures

Bank of America (repeatedly)

Investors’ Growth Capital

Silicon Valley Bank (repeatedly)

Hercules Capital

and now… The Private Bank (since acquired by)

Canadian Imperial Bank of Commerce….

I am sure there are others, but I won’t bother to search all our archives for the term “lender default risk.”

Starting in Q2 2018, Mattersight’s borrowing costs will once again rise appreciably — and within a year, it will be looking for a new banker — after raising yet more dilutive equity late in 2018.

It seems it has been this way for at least ten years — maybe even 20.

I forget. How on Earth does the board allow this?

After I return from the NCAA Final Four in San Antonio, I may just tally up all the “exit fees” Mattersight has had to pay to bankers, vulture lenders and others, as it repeatedly broke promises made to these lending sources.

It has to be north of $15 million, over the last 15 years.

Travel well — but travel light, all!

And, GO RAMBLERS!

3 thoughts on “I Cannot Think Of Even One Bank/Vulture Lender Relationship — Over 20 Years…”

How does this happen? A bunch of idiots playing around with other people’s money (OPM). The management, the board, the bankers and the VCs. None if it’s their money. It’s other people’s money. What the frack do any of them really care? They’re getting paid regardless of how well the company has been doing.

The solution? It resides with the employees, including all levels of management. No one should get a penny or share of stock as bonus unless the company makes a profit for the year, and then the bonus pool a fraction of the profit. Every employee, including all levels of management, has measurable objectives. 100% attainment is the expected performance standard. If you miss one year, you’d better fracking make up for it the next year or you’re gone.

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