Adeo Ressi

Adeo Ressi
Born New York City
Residence San Francisco, California
Alma mater University of Pennsylvania
Occupation Entrepreneur
Known for

Founder & CEO of

Website Adeo Ressi on LinkedIn

Adeo Ressi is an American entrepreneur and investor who is best known as the founder and CEO of TheFunded and The Founder Institute.[1] He has been a fixture in the Silicon Valley since creating TheFunded in 2007.[2] His previous business ventures include methodfive, Game Trust, Total New York, and Expansive Ventures.[3] He has also sat on the board of the X Prize Foundation.[4]

Early life and education

Born Adeodato Gregory Ressi di Cervia, Ressi is Italian-American,[5] and was raised in New York City's Upper West Side. As a child, he asked his parents to send him to Arcosanti, an experimental town in Arizona, rather than traditional summer camp. He spent four summers in Arcosanti as its youngest working resident. He was often tasked with performing menial jobs[3] like cleaning out sewage pipes.[4] His experiences at Arcosanti piqued his interest in environmental issues and influenced his career path to some degree.[3]

Ressi attended college at the University of Pennsylvania where he spent time as a housemate of PayPal co-founder, Elon Musk. Ressi and Musk opened an unofficial "nightclub" at their house, boasting as many as 500 patrons on a single night.[6] As an undergraduate, he founded the Social Revolutionary Club[4] and started an environment-themed campus newspaper called, Green Times. He was an environmental studies major.[7] He spent four years in college but did not receive his degree, because he wanted to use copies of Green Times as his senior thesis instead of writing a traditional paper.[3]

Career

After ending his collegiate career, Ressi co-founded Total New York, a localized news website, in 1994.[4] In 1997, America Online purchased Total New York for an undisclosed amount of money[3] and redubbed it AOL Digital City.[4] He founded methodfive, a web development firm, in 1995 and sold it to Xceed in 2000 for $88 million. Ressi used the money from his previous two ventures to found Game Trust, a developer of online casual game infrastructure, in 2002.[3] Game Trust had a successful first round of funding in 2003, securing investments from Silicon Alley Venture Partners and Intel Capital.[4]

Adeo Ressi speaking at a conference in 2010.

The second round of funding was due to be provided by Softbank Capital in 2005. On the day of the deal, however, representatives from Softbank informed Ressi that they were pulling out. The investment would have been worth $10 million. Because Ressi was contractually obligated to not seek other investors while negotiating with Softbank, Game Trust was left with little remaining capital. Ressi was forced to take out a bridge loan from existing investors to keep Game Trust afloat. Even so, by the fall of 2005, Game Trust had secured $9 million in funding, including $3 million from TWJ Capital. After a failed development project at Game Trust in 2006, Elon Musk was voted off the board of directors and replaced with the son of TWJ Capital founder, Thomas Jones. Jones would try unsuccessfully to take control of Game Trust away from Ressi.[4]

Adeo Ressi speaking at the Startup Festival 2014.

Ressi eventually sold Game Trust to RealNetworks in 2007, but his experience with venture capitalists led him to start TheFunded in 2007. The website is designed to allow entrepreneurs to write anonymous reviews about venture capital groups and their processes. The website was met with derision from venture capital groups,[3] but proved to be popular among entrepreneurs. Ressi intended to keep the site anonymous, but news about its existence leaked to TechCrunch. The site had 1,000 anonymous entrepreneur members by March 2007. In order to remain anonymous himself, Ressi adopted the pseudonym of "Ted." In November 2007, Ressi decided to reveal his identity in a piece in Wired.[4][8] By January 2008, TheFunded had 3,600 members.[3]

In 2009, Ressi embarked on another venture called The Founder Institute, a startup incubator and entrepreneur training program headquartered in Palo Alto, California.[7] The organization was co-founded with longtime colleague Jonathan Greechan. The goal of the institute is to combat startup failure and "globalize Silicon Valley."[9] As of 2014, the institute had expanded to over 80 cities[10] and 40 nations worldwide.[11] Ressi wanted to help entrepreneurs create better businesses, and he also wanted to understand the ingredients for a successful entrepreneur.[1]

In 2011, in collaboration with Orrick Law Firm, Ressi and the Founder Institute released the Founder Advisor Standard Template ("FAST" Agreement),[12] a simple legal framework entrepreneurs can use freely to create relationships with business advisors.

In 2012, in collaboration with Wilson Sonsini Goodrich Rosai, Ressi and the Founder Institute released "Convertible Equity",[13] a financing vehicle that provides all of the flexibility of convertible debt without hindering a company with loans. In addition, he was interviewed by The New York Times as part of a cover story of the Sunday Business Section of the newspaper.[14]

In 2014, Ressi co-founded Expansive Ventures, a venture capital investment firm with Jon Soberg, a venture capitalist.[2].

In 2015, Ressi was featured on the cover of Entrepreneur Magazine,[15] and began writing as a Guest Contributor to Forbes Magazine.[16]I

Removal for Cause and Bankruptcy

In July 2016, an arbitrator determined that Ressi had breached fiduciary duty and contract with regards to Expansive Ventures, plotting to squeeze his partner out of the firm. The arbitration finding ordered him removed from the fund for cause and further ordered him to pay his partner $3.5M in lost management fees and reputational damages[17] In September 2016, the judgment against Ressi was confirmed in San Francisco Superior Court.[18][19] On November 15, 2016, Ressi filed Chapter 11 bankruptcy.

Arrest

Adeo Ressi was detained after he was involved in an altercation with a flight attendant during a Virgin America flight to New York City. Ultimately no charges were filed.[20][21]

References

  1. 1 2 Ha, Anthony (12 October 2009). "The Founder Institute's Adeo Ressi on his plans to leave no entrepreneur behind". VentureBeat. Retrieved 7 December 2014.
  2. ↑ Tweney, Dylan (15 May 2014). "One of venture capital's harshest critics — Adeo Ressi — is launching a VC firm". VentureBeat. Retrieved 7 December 2014.
  3. 1 2 3 4 5 6 7 8 Ante, Spencer E. (9 January 2008). "Show Me the Moneymen". Bloomberg Businessweek. Retrieved 7 December 2014.
  4. 1 2 3 4 5 6 7 8 Adler, Carlye (15 November 2007). "The Man Behind the VC Slagfest at TheFunded.com Reveals Himself to Wired". Wired. Retrieved 7 December 2014.
  5. ↑ http://techcrunch.com/2010/09/03/the-fundeds-adeo-ressi-arrested-after-virgin-america-incident/
  6. ↑ Vance, Ashlee (9 August 2012). "Adeo Ressi on Entrepreneurs and Startup Culture". Bloomberg Businessweek. Retrieved 7 December 2014.
  7. 1 2 Cohan, Peter (5 November 2012). "Adeo Ressi's Founder Institute Sprouts Start-ups Around The Globe". Forbes. Retrieved 7 December 2014.
  8. ↑ Hopkins, Mark (15 November 2007). "theFunded: Ted is Adeo Ressi". Mashable. Retrieved 7 December 2014.
  9. ↑ Greathouse, John (16 September 2013). "This Entrepreneur Publicly Spanked America's Most Arrogant VCs... And Lived To Tell The Tale". Forbes. Retrieved 7 December 2014.
  10. ↑ Exter, Leo (7 September 2014). "Founder Institute is back in Brussels this autumn: join to learn the ropes of running a startup". WeStartup. Retrieved 7 December 2014.
  11. ↑ Cosseboom, Leighton (16 September 2014). "Taking stock of Jakarta Founder Institute grads: Who's still standing?". Tech in Asia. Retrieved 7 December 2014.
  12. ↑ Empson, Rip. "Free Startup Docs: How Much Equity Should Advisors Get?". TechCrunch. Retrieved 2016-11-22.
  13. ↑ Rao, Leena. "Convertible Equity, A Better Alternative To Convertible Debt?". TechCrunch. Retrieved 2016-11-22.
  14. ↑ Seligson, Hannah (2012-07-28). "Founder Institute's Requirement: Create a Company". The New York Times. ISSN 0362-4331. Retrieved 2016-11-22.
  15. ↑ Ankeny, Jason (2015-02-13). "Inside the Mindset of Silicon Valley's Tech Innovators". Entrepreneur. Retrieved 2016-11-22.
  16. ↑ Ressi, Adeo. "Adeo Ressi - Adeo Ressi Blog". Forbes. Retrieved 2016-11-22.
  17. ↑ http://www.wsj.com/articles/startup-maven-adeo-ressi-must-pay-ex-partner-3-5m-arbitrator-says-1470276785
  18. ↑
  19. ↑ http://fortune.com/2016/11/17/expansive-ventures-lawsuit/
  20. ↑ Arrington, Michael (2010-09-04). ""The Funded" Founder Adeo Ressi Arrested After Virgin America Flight | Business Insider". Retrieved 2016-07-28.
  21. ↑ Arrington, Michael. "The Funded's Adeo Ressi Arrested After Virgin America Flight Incident". TechCrunch. Retrieved 2016-07-28.

External links

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