My startup is running out of fund soon. We have no revenue and failed to raise external capital. Our product development is almost done, but we need a lot of money to launch our product to market (we are in fintech business). We don't have that amount of money, and it is not even close.
So th...
So the real question is what to do after the company die? If I keep working on this, the company can stay in zombie mode for years. I honestly think we should shut the company down. My cofounder is telling me if I don't keep working on this startup (using the money out of my cofounder & me's pocket after the company die), then I am being guilty to him, guilty to current investors and guilty to employees, because I am not all in.
What are your guys thought?
Comments
My favorite sticky floor local dive bar shuttered at first blush of the pandemic. We've all been waiting with promises of an opening around the corner. I finally got the skinny: owner took the moment to do much needed deep repairs, gutting the whole place. But he needed more money to get it back up and running. So he took out a loan, and then another. Now it's not finished and he can't get any more financing. Wtf is he going to do?? I say open the bar in the bar's parking lot is what.
Similar to you, you ran out of runway and have seemingly nothing of substance to end users or investors alike. Take what you can from your code and pack it up. Keep your network of smart people around you in good favor. This one is done. Try again. Maybe a very similar product or wildly different. No zombie'ing! Your time and life are valuable. Use it as such.
By whentojoin 2022-10-304:49 That's really good advice. I only have 1 life.
By iancmceachern 2022-10-3019:43 This is the best advice. Do it before you've burned bridges trying to keep this one going.
> My cofounder is telling me if I don't keep working on this startup (using the money out of my cofounder & me's pocket after the company die)
You should establish what that would actually look like. How long would you guys realistically run like that? What would you need to accomplish to make it work? How much time would you have to accomplish your goal?
By whentojoin 2022-10-305:172 reply For me I want to move on something new. There is no point on saving something would almost certainly not work.
But I am feeling guilty. He left his job to join me, and we are cofounder for a couple of years.
He told me I am wasting his time if I don't keep working with him. That makes me feel very bad.
By blacksoil 2022-11-1023:43 To keep working without clearly defined goals and deadline is a waste of time as well. There needs to be a clear KPI as to what product features should be completed by when, as well sales plan and concrete sales KPI to hit. After that, use the money and resources at hands to give them a shot. After the deadline is reached, sit down together, evaluate, and decide what's next. The expectation has to be very clear (I.e to make X amount of profit within Y months) and it should be evaluated very objectively to avoid any hard feelings
He could be wasting his time too. If he's playing on your emotions that's just manipulation. What's best for both of you? Enabling him to waste his life chasing his white whale is not the right thing to do. Especially if you end up collateral damage on the way.
If there you think you've got the drive to make this work then make it work. If not move on.
By joshxyz 2022-10-309:49 they should immediately put stop into this blame game and really address the underlying issues: there is no money coming at the door and the lights wont be kept on if it stays that way.
if you cant raise some funding, close some sales.
Just remember that doing a startup is risky and all of you took that risk - you, your cofounder, your investors and your employees. Sometimes, risk pays off, but most of the time, it does not.
Playing the guilt game just makes is an emotional blackmail and you need to learn to recognize it as such. You do not have to all-in in something you do not see a good chance of success. Knowing when you fold and walk away from the table is an equally important skill.
By whentojoin 2022-10-306:31 This is the first time I encounter that. The more I think about it, by "you have to all-in in something even if the company runs out money" standard, I suspect even majority of unicorn founder won't start the company in the first place.
