When the Well Runs Dry

This Texas entrepreneur dug deep to replace VC funds he lost unexpectedly.
  • ---Shares
This story appears in the July 2005 issue of Entrepreneur. Subscribe »

What's an entrepreneur to do when investors back out in the middle of an $80 million-plus construction project? Jack Gray, 48, knows the answer from firsthand experience. Gray's Austin, Texas, company, Gigared, was building a 1,100-kilometer-long telecommunications network in Argentina when his American VC investors abruptly backed out in September 2001--still $6 million shy of completing their investment.

Gray scrambled to renegotiate terms with vendors and debtors, invested more of his own money, and looked for new VC investors. By offering a greatly reduced stock price, Gray received enough in new investments to complete the build-out. With 2005 revenue expected to top $5 million, Gigared is once again in the black.

Says Gray, "When you get burned that badly, you want to have someone you know you can trust. That's a huge component of picking a VC partner."

Edition: July 2017

Get the Magazine

Limited-Time Offer: 1 Year Print + Digital Edition and 2 Gifts only $9.99
Subscribe Now
OK

This website uses cookies to allow us to see how our website and related online services are being used. By continuing to use this website, you consent to our cookie collection. More information about how we collect cookies is found here.