Amp’d Mobile Founder’s High-Flying Commute
6/15/07 – As we gain some distance from Los Angeles-based Amp’d Mobile’s sudden bankruptcy announcement two weeks ago, answers are emerging as to why the company that raised $360 million in funding over the last two years ran out of money.
Silicon Valley rumor blog Valleywag provides the latest evidence that the bankruptcy may have had more to do with simple financial mismanagement and less to do with a flawed business model, reporting that founder and now-former-CEO Peter Adderton used to commute via private helicopter from Orange County to Amp’d’s Los Angeles headquarters—paid for by the company.
While Valleywag reports “rumors,” the site has been spot on with the Amp’d story, and was the first to report on the cash crunch that led to the chapter 11 filing, as well as the imminent departure of Adderton.
Assuming that the report is indeed accurate, when combined with already established facts like nearly half its customer base being delinquent on their bills, a picture emerges of a company that operates in a relatively difficult and cash-intensive sector that also badly managed its funds.
This may be good news for other MVNOs, like Amp’d’s Los Angeles-based counterpart Helio, in terms of perception of the often criticized business model and helping to alleviate customer hesitation to sign up with an MVNO.
Amp’d Mobile – www.ampdmobile.com
Helio – www.helio.com
