Information Technology Reference
In-Depth Information
to Kutt, at the completion of the sale of his shares to Elliot on 30
October, Kutt was to deliver to Borden & Elliot a written apol-
ogy addressed to all shareholders of Micro Computer Machines
Inc. and signed by him. The details of the apology statement
were to be worked out between Borden & Elliot and Richard
Bain, Kutt's new counsel. A draft of the statement prepared for
Kutt in the form of a letter to
MCM
shareholders, read
Dear Shareholder,
… In my [18 October 1974] letter to you I may have
implied that Borden & Elliot had not acted in the best
interest of the Company. I regret any such implication. W.
Struan Robertson has always acted fairly as have the other
partners of Borden & Elliot, and I apologize to them if
any inferences to the contrary were drawn from my letter.
In the statement, Kutt also informed the shareholders about his
resignation as
MCM
's president and said that the guarantors in-
tended to invest substantial additional funds in
MCM
to finance
the successful development and marketing of
MCM
products.
This was his last communication with the shareholders as the
president of
MCM
. And then he was gone.
entrepreneurs
“The horned angels of hard-pressed entrepreneurs” - that's how
David Thomas described some of the venture capital groups of
the 1970s in his book
Knights of the New Technology
, pub-
lished in 1983. They “provide money to young companies that
are rich in prospects but short of cash,” explained Thomas.
“They expect, however, to get returns of 30 to 40 per cent a
year on their investments and often demand control of owner-
ship and management. If the entrepreneur fails to deliver on his
promises of high profits, they force him out.”
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