Jobloft.com Raises Some Cash
October 23, 2006 by Mark Evans
Filed under Business
Jobloft.com recently raised another $200,000 – doing it in high-profile fashion on the CBC’s Dragon’s Den show. (Hat tip to David Crow.) Update: To get the money, Jobloft.com gave up a 50% stake in the company. That strikes me as expensive but perhaps that was the cost of getting the money the company needed based on its business model and needs.
I couldn’t be happier for the jobloft guys in that this was a validation of their business, but I think “the dragons” simply took advantage of some guys who didn’t know better.
The dragons touted their experience and own businesses, but the truth is that they have each been successful in Canada only, and a few of them just mildly, and none of their businesses are that large on the international (or even just Can/USA) scale that jobloft needs to think on.
I think the guys at jobloft have done a great job and built a product that will certainly service a niche. However, I couldn’t help but feel sorry for them at the end of the show, because they were outlandishly exploited by the Dragons. To give up 50% of your company for idle promises that may never materilize is somewhat crazy. I don’t think the dragons are the ones that could make this work international as their connections a much too Canadian. Live and learn, the job loft guys needed a little experience on their side to get a deal that would create max value for their company. They will not make much from this deal but it will certainly be a learning experience for them. Hope they have some more good ideas for the future.