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02/23/2006: "Dr. Brilliant, strike three?"

"Dr. Brilliant"'s appointment as the director of a $1B fund strikes me as the single largest groaner so far this year.

He's failed twice already.

Prior to CoMeta (which was a huge flop), "Dr. Brilliant" (say it like you're Austin Powers) previously flopped quite badly with a "WiFi service provider" named "SoftNet Systems". Actually "SoftNet" was three companies:

AerZone: WiFi in Airports and hotels (and thus a competitor at the time of Wayport (still alive), STSN (still alive) and Mobilestar (dead, purchased out of bankruptcy by T-Mobile).

Intelligent Communications: VSAT satellite-based internet services and VSAT terminal equipment sales.

ISP Channel: a provider of Cable MSO (cable modem) operations to small-town CATV operators.

SoftNet pulled the plug on Aerzone December 19, 2000, three days after winning the contrct for SFO, and less than three months after publicly launching, despite having the SFO deal in-hand. AerZone was founded in January 24, 2000, but wasn't launched until October of that year. Take off to crash in less than 12 months.

SoftNet was publicly traded at the time, but they're long since delisted. SoftNet ran through at least the $129 million invested by various parties, (including PCCW and CMGI, two of the most notorious dot.com of VC firms), plus the money raised in their IPO.

Wayport (where I was the founding CTO and VP of Engineering) ended up buying and operating some of AerZone's "Laptop Lane" locations in various airports.

I don't remember when Intelligent Communications and ISP channel died, but they did, both, die.

"Dr. Brilliant" (its more fun if you say it right) reappeared in December 2002 with Cometa, a company that bragged about building 20,000 access points in two years. The initial press release made clear what later news stories did not: Intel Capital, AT&T Broadband, and IBM Global Services were involved. Intel put in money alongside 3i and Apex; AT&T and IBM were committed to providing services. Cometa was never a bohemoth of AT&T + IBM + Intel, despite all coverage and spin to the contrary.

By March 2001, Brilliant was out—he’s an "international health expert" and said he thought he might be called into duty over bio-warfare at any time (this was pre 9/11!). Gary Weis of AT&T was appointed CEO, but not much happened after that. By May 2004, Cometa shut down, never having built a network with significant locations or scale.

The whole thing strikes me as "Larry continues to fight the war he's lost" (twice), only now he's got "cash in fuck you quantities" I suspect (but don't know) that Google's recent investment in FON had something to do with Larry Brilliant as well.

As nearly any real VC will attest, giving a young company $22M in a first round is, essentially, stupid as hell.