Web Hospices?

K-Man asks: "A while ago, I spent a few months at a dying web startup, and, as I looked at the costs of running such an operation, I realized that a tremendous synergy could be achieved by consolidating multiple dying web startups into one umbrella organization. Many functions - bankruptcy filing, creditor evasion, even hiring contractors for fictitious compensation - could be combined under one roof. While the "web incubator" was invented in the 90's, why has no one adopted a similar model for the 00's?"

Comments

Well ...

[Anonymous Coward]

"why has no one adopted a similar model for the 00's?"

Because it sounds illegal?

Because

[rjamestaylor]

misery really doesn't love company. . .

This is a hard-to-believe-it's-serious "question." But, assuming it is a legitimate request for input, I'd say this: the dying web start-ups are the least likely to realize they are dying. The reason they're dying is lost on the managers/owners who are true believers in the business model, regardless how much it's tied to a sock puppet, and believe that this last round of funding will be a success as Warren Buffet finally "gets it" and sinks his wad in the idea. You see, the start up is failing because those directing it lack the foresight and objectivity to realize that it is a failed proposition.

I've seen this up close and personal. A partner company was in a "final round" of financing and could not believe it fell short of funding by the price of a nice car. What it did not realize is that the technology, while excellently engineered, was dated and similar applications developed today could be deployed, maintained, customized, etc., at a fraction of the time and engineering cost of their product. It was painful to watch. But one thing became clear: those in the companies that end up on the frontpage of FC are the only ones surprised.