The bankruptcy of Flagship Studios, an ambitious videogames startup, provides a startling example of what not to do when it comes to finding funding for your startup. The company, founded by CEO Bill Roper, formerly of the Starcraft team at Blizzard North, leveraged the intellectual property rights for its two games, Hellgate: London and Mythos, as collateral in order to secure loans to keep the company afloat. When the company finally ran out of that money, the two core projects immediately reverted to the lenders, Comerica and HanbitSoft, respectively. HanbitSoft, a Korean company which had the exclusive rights to market the games in Asia, ended up in a position where it was in the company's interest to let Flagship go under: Why pay licensing fees when you can own the game outright after the owner goes under?