texts: Right. The guys who started that did what a lot of companies in the Valley do. They get a good idea, shop it around, raise some capital, then sell it off to a bigger company. Microsoft, Intel, Oracle, whatever. The beauty of it is, they've pretty much sold the company before they're even real. The bigger company is already set to buy it, all they want to do is make sure that the idea actually works. So they get some start up capital, make it work, then sell it for like five times the initial loan.
labels: Sort of like a letter of intent.