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i am loosely associated with a group that might submit - might need to ask shawn for an extension though!
webinnovators run by Beisel at Venrock would be a great partner as well
but whats wrong with working hard? whats wrong with your partner and you profiting from your hard work? whats wrong with both parties paying a collective penalty for failing? (alot actually!)
what always amuses me is when entrepreneurs take the attitude like you do in hard times. do you think for a moment that a VC in any way benefits from layoffs, bad management and foolish spending? his work on the company likely triples, his value probably halves, and his friction increases.