My startup has been around for 2 years. We raised some money and built a product but have had almost 0 customers. We have been trying to raise money for the better part of 8 months without much luck until recently. A small VC is giving us a term sheet to lead our seed round $1mm+. The problem is at the beginning of the year I told my co-founder I would be leaving at the end of the month and I went and got a new job. Ultimately based on our experience (myself and my co-founders) I don't think either of us have what it takes to create a successful exit. I am very young and don't feel equipped to lead as a CTO. Ialso don't believe in our product which in my eyes has shown to not work over the last 16 months where we have spent over 500k with little returns. He wants me to stay now so that we can at least close the check as it would be very hard to close it solo. Should I stay and try to pivot? Should I leave and burn him and our investors? Is there a middle ground where we both get what we want?
Quit. It’s over. You can’t be there if you hate it.
First, sorry that your venture wasn’t successful. Second, stay back till the end(till the last day). Close things appropriately with your VCs, employees and co-founder. Word spread very fast in Bay Area and technology domain. Incorrect closure with VCs will come and bite you in future. If you want to start new venture 10 years down the line, then at least your good reputation will be a big positive. Bad reputation will neither help you with VCs nor future career growth.
Agreed
Agree. Try to see if you can push the start date by a few months. Delaying start date by something like 6 months actually happens more often than one would think.
leave
I’ll never understand these companies that raise money and have 0 customers. I’ve never had either problem.
there is no middle ground. these posts saying delay your start are suggesting malfeasance on your part. you cannot help raise money as a co founder, then leave a short while later. VCs invest in the team, not the product. just leave.
Be honest, leave and let your co-founder and the investor know ASAP.
I let my co-founder know almost a month ago. He instructed me to handle business as usual in our meetings with investors and now he is trying to get my to reverse my decision.
Question: is there something special that makes your cofounder and VC still believe in the startup and you don’t believe it? The VC still willing to invest 1M and cofounder still intent on spending his life on this, they must believe it can pivot somehow and succeed. Ask yourself if you agree with them. If so, give it a shot, they say the biggest determinant of a startups success is the perseverance of the founders. But if you disagree with whatever they believe and don’t think it’ll ever work out, you should be honest and leave now. It’s disingenuous to both the cofounder and the investor to pretend to believe in it. If cofounder wants to force you to stay despite you telling him your pessimism about the startup, even worse, means he’s a bad leader.
That's the thing. My main reason for leaving is I think my co-founder and I lack the experience to turn it around. I believe this has been validated by our very poor sales numbers in the last 16 months. We are super disorganized and have no clear roadmap that makes sense. It doesn't matter what we pivot to he is not a great leader and I still have a lot to learn before I am. The VCs are very small and we would be the 2nd lead investment they have done. Whether they believe in us or our business I am not sure.
If you don’t believe in his leadership, I think it’s time to leave, don’t waste more of your life and energy on something you don’t believe in. Sounds like you had a really valuable experience anyways, you can enjoy your life at the Unicorn for a year or two and learn some things, then try another startup when you feel up to it. Good luck!
I do not have anything to add to this conversation. Just wondering what you mean by you are too young to lead? If you feel that way, with the new money you can always hire some one more experienced. If CEO agrees too, you can hire a new CEO. The point is you only learn by doing and many times I have heard from founders ( who did decently good) they had no clue what they were up to. I remember in one YC event Ben (Pinterest ) that he had similar thoughts in the beginning for years. I wish you all the best in what ever you decide. Building something from the ground up is an accomplishment, you should be proud and use the learnings to what ever you decide .
Stay and get the check then find your replacement.
What about the company I accepted an offer at? It's a unicorn startup and a really good role.
When are you supposed to start? You could burn the co founder relationship but somewhat come out ahead w the Vcs. I’m skeptical when you say unicorn given everything else.