In early 1997, an ambitious healthcare startup called Dr. Koop, which was founded by former US Surgeon General C. Everett Koop, went online. It was during the era when internet portals reigned, and the company spent its first year struggling to gain exposure. By the end of 1997, with no traction and zero revenue, it was running out of money.
On April 6th, 1998, the company closed a respectable $1M Series A financing. It wasn’t enough, apparently, because just 22 days later, it closed another $6.8M Series B round. By the end of 1998, Dr. Koop had taken about $8 million in financing, made just $43,000 in revenue, and suffered a net loss of $8.997 million.
Nine months after the series B money was in the bank, and in desperate need of more cash, the company raised another $3.5M. It...