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Summary:

You may heave heard by now that the P2P startup AllPeers shut down yesterday, which cofounders Matthew Gertner and Cedric Maloux announced in this empassioned blog post. The reasons why AllPeers went bust are all too familiar — the interests/expectations of the founders apparently weren’t aligned […]

You may heave heard by now that the P2P startup AllPeers shut down yesterday, which cofounders Matthew Gertner and Cedric Maloux announced in this empassioned blog post.

The reasons why AllPeers went bust are all too familiar — the interests/expectations of the founders apparently weren’t aligned with those of the investors. This was confirmed in a response to a query from Gigaom’s Liz Gannes yesterday.

But in Matt’s impressively cool-headed email, you’ll find a founder’s optimism that is worth modeling, too — especially in its emphasis on what still can be done with the product(s) of AllPeers’ “crazy dream.”

Basically our investors had certain expectations in terms of user base growth. We were very happy with the adoption of the product but they weren’t… The source code for our client is already open source, and we’re planning to put it up on an independent site like SourceForge or Google Code in case it can be of use to others.

There’s more silver lining here. We actually learned of AllPeers’ news first through Seesmic founder, Loic Le Mur’s blogpost entitled “The positives of an entrepreneur failing,”

It goes without saying that we think Loic has the right attitude here. Among the “positives” Loic takes from his friend Cedric’s momentary setback:

* Cedric, you have learnt a lot, possibly more than if you had succeeded
* I am sure you will come back later with another idea of business
* the important is to keep trying to be on the move, to do things
* do not listen to anybody who laughs at you, you tried, you did great things, and they probably never did
* it could happen to any entrepreneur and I have a lot of respect for what you did
* it is always interesting to understand why. [this idea didn't work this time] I am not sure in this case, the idea was pretty good. Too early, no business model ? Unsure.

We enourage you to go back and read the comments on Loic’s post, too.

Remember Cedric and Matt, founders, if/when you’re faced with the decision to shut down your own company one day. It’s nice that they’ve maintained the perspective that there is always something to be gained from such defeats — even more, perhaps, as Loic argues — than from the victories we seek.

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By Carleen Hawn

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  1. [...] posted yesterday on the failure of AllPeers. This is an evergreen topic on founders’ sites like ours, failure being an experience all of us [...]

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  2. Well at least they learned some valuable information from the enterprise failing. Fortunate enough for me I learned about a service called 2Peer, http://www.2peer.com, just before this happened.

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  3. Carleen. I know that this quote is used a lot, but it sits above my desk:
    “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
    Teddy Roosevelt

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  4. [...] reader offered up this inspiring quotation in his comment yesterday to our recent post on AllPeers, Good Lessons in One Graceful Failure yesterday. We think it is worth promoting. Matt wrote in to say… I know that this quote is [...]

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