garry’s subposterous

Amazing that the startup went to this length to get this domain name. Surely they could have chosen something else. To sign away a piece of your company like this seems reckless and shortsighted, no?

For consumer sites, names are important, and I don't know how much they signed away. It depends ;-)

If it were 10%, I would be freaking angry. If it were 0.5% to maybe 2%, it might be OK.

I was wondering how they could afford thread.com with only a million dollars in the bank. Seems like a low six figure domain?

too bad it's a generic name, though much better than... frin..tro

I agree that it's an interesting agreement and clearly reckless on the part of the startup. However, this domain was not exactly 'squatted' on, given that it is extremely generic.

In fact, from a domainer's perspective (I have been involved in the domain industry), I'd say the domain owner played his cards really well and got a great deal. The entrepreneur probably did not make the best choice, though that depends on the stake he gave away.

I see nothing wrong with this. It's like getting mad at someone for buying a house that you wanted. Snooze you lose.

In 1999 the economy in the valley was booming. Commercial real estate was at record occupancies. When we were looking for an office, in all of Alameda County there were three suitable properties available. The landlords had raised rents to stratospheric levels, of course, but demand continued to outstrip supply.

So what did the landlords do next? They demanded equity. Warrants for 2% of the company, on top of the extortionate rent. It felt like we were serfs in a feudal economy, but it really is just supply and demand. I'm not at all surprised that domain name holders can negotiate for equity.