Ask HN: 5-7 months of living expenses left; terrified. Advice?

Even though we didn't "technically" know ourselves to be in a recession, I knew something bizarre was going on that summer. I had some really surprising rejections. I never find rejection to be shocking, because even if you're really good, you might not be a fit... but I got turned down for in-person interviews at companies that would have been slam-dunks (for in-person interview) in mid-2007.

Anyway, I found my way to a really cool startup and began working there, the only downside being that pay would be deferred until we had funding. I was told that we'd probably have funding by November. I figured January - March was more likely, since PG's essays have educated me on the fact that funding matters are always a lot worse than expected, but I had enough savings from the hedge fund days to hold out that far.

It's January. I enjoy the work a lot more than I have at prior companies. The problem is that I have no control over the funding situation, and it's started to scare the shit out of me the minute we crossed into 2009. I only have 5-7 months of living expenses now (fuck New York's ridiculous housing costs). I honestly have no idea what I'll do if this doesn't pan out. I don't want to go back to Wall Street and might not be able to (there may not be a Wall Street). With an imploded economy, even a traditional job search is going to be risky and time-consuming. I don't have any contacts that could lead into consulting projects, and taking a typical software job (Java to implement some business guy's lame vision) is about as palatable as selling out and getting an MBA. I want to stay in technology, but working on cool projects and using decent languages (e.g. Lisp, ML, Haskell... or Python/Ruby at the very least).

If the startup gets funding, and it probably will, I'm fine. However, I'm worried about that 1-in-20 (?) chance that we don't manage to line up funding in time, in which I need to do a crash job search in an imploded economy and on shaky ground (and I don't want to do any job search, because I really like the startup and the projects I am working on). It's getting to the point where I hate spending money and I'm delaying necessary expenditures.

So, I'm staring down a 1-in-10 or 1-in-20 risk of utter disaster and now that it's 2009 I'm starting to get scared. Has anyone here been through disaster before? How did it pan out?

This is the problem! You need to do some networking; and I don't mean in some sleazy marketroid way.

Go to barcamps, meetups, language groups, hacker groups, photo meetups, or whatever floats your boat. Get people's twitter names and keep up conversations with them. Go to the bar with them occasionally. Make friends.

If you do this for 5-7 months I guarantee you'll have plenty of connections by the time you need to get a job, and you won't have to spend any of your work time doing it.

The reason I ask is that I assume from your experience with the Hedge Fund, that you probably have more financial expertise and contacts than the founders. Maybe they even cut you in for more.

How is he supposed to get funding, if he does that?

http://paulgraham.com/startupmistakes.html

2. Bad Location

Startups prosper in some places and not others. [...] It's an interesting question why cities become startup hubs, but the reason startups prosper in them is probably the same as it is for any industry: that's where the experts are. Standards are higher; people are more sympathetic to what you're doing; the kind of people you want to hire want to live there; supporting industries are there; the people you run into in chance meetings are in the same business.

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http://paulgraham.com/startuphubs.html

In addition to the concentration that comes from specialization, startup hubs are also markets. And markets are usually centralized. Even now, when traders could be anywhere, they cluster in a few cities. It's hard to say exactly what it is about face to face contact that makes deals happen, but whatever it is, it hasn't yet been duplicated by technology.