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Should I shut down my company - Startups Anonymous
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Should I shut down my company

I absolutly hate my investor and I don’t think I can continue running my startup with them involved – they invested $25k through an accelerator (for an equity share im too ashsamed to say). The money is all they’ve given! everything else the promised has been BS e.g connections, follow on investment etc

I’m really considering shutting down the comapny – I see this situation as having a really bad co-founder that you could no longer work with. I still believe in my startup and would probably want to continue working on it. What should I do?

  • If the investor isn’t giving connections or anything else of value, how is the investor still involved? If they just have equity in your startup and let you do your own thing, that’s not so bad. If they’re a minority shareholder you can just ignore them and focus on your business. If you’re sore about the investor having equity without doing any work, then you need to grow up.

    An investor doesn’t care about 25k, so they also won’t care about your startup. They invest in 25k in 100 startups, hoping one of them becomes a unicorn. If your startup isn’t a unicorn, they don’t care about you.

    If you shut down your company you can’t take any of the IP with you for a new venture. That will set you back enormously. It doesn’t make sense to give up if your startup is showing promise.

    If the investor is inexperienced, you may be able to dilute them or otherwise screw them out of their shares. Once you’re making good money you can probably afford to have some lawyers explore the options. For the time being you better just suck it up and grow your business.

    Reply

    • Agreed except for the “screwing” part – just be the awesome side of the situation.

      You’re lucky to have the funds, and it is also great that you learn early on that you never get to drop, off load, or share the tenacity needed in founders. Get to work, or just get more funding, or both.

      Good luck, this is very minor bump of what’s to come.

      Reply

  • Sometimes you jump into bed with the devil. You did, most likely because you wanted Money. If they are doing nothing then buy them out, but wait, do you actually have any money coming in? Next time do your due diligence.

    Reply

  • There are good failures and bad failures. This would be a bad failure. It should be reflected on both your score cards much like a credit rating.

    If I had a founder that I funded quit that easily, they should not be allowed to get back on the horse anytime soon, if at all.

    The ex-founder should steer unwitting entrepreneurs away from said investor/accelerated if they believe that the experience was not unique to themselves.

    Reply
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