Mike Lee Fired From Tapulous, Venture Capitalists Ruining App Store? [Updated]

In a disappointing turn of events, Mike Lee, founder and former CEO of the prominent iPhone app developing company Tapulous, the folks responsible for the popular apps Tap Tap Revenge, Twinkle, and Friendbook, announced on his blog that he has been asked to resign from the company he helped to create. The news leaves us wondering how and why, and what it means for the future.

Lee didn’t include details of the break, except that the venture capitalists decided that the disagreements he and his team had with the business guys meant it was his time to go. It’s not known what his departure will mean for the development community as a whole just yet, but it’s our opinion that it’s Tapulous’s loss.

John Casasanta of Tap Tap Tap has shared his thoughts on various subjects in the past, and recently responded to the news in a blog post of his own in which he explains the danger app developers face when dealing with venture capitalists, and how he believes they cannibalize the efforts and dreams of the creative product makers to turn a profit, usually at the expense of the founder. According to Casasanta, VCs are contributing to the lack of quality applications, and threaten to fill the App Store with shovelware.

Still, there may be hope yet. John continues on to say that venture capitalists are not always necessary, and that developers can chose to try and simply put work into it.

Either way, we’re very glad to hear that Mike Lee has decided to get back on the Cocoa horse. He announced in a post earlier today that he’s going to be starting up a new company on his own with funding from sources he thinks he can trust. We’re not sure if he’ll keep in the iPhone developing game, but we hope he will.

[via TUAW]

Update: Sam Levin managed to get an interview with Mike Lee, which can be found here.

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