Today I have found myself at a crossroads, first a little background.
I have been building a thing for about 18 months on and off. About 3 months ago I decided to partner up with someone and go all in - my partner is based on the other side of the globe, so as part of him coming on board we met and spent some time together - including pitching to VCs. As part of this partnership we bestowed the title of CTO on me and CEO on him. We have worked on perfecting our message etc and can really hit a good pitch, the problem comes from commitment - I am working on "thing" full time and also doing some freelance to pay the bills/feed my family. CEO can see this so advised me about 4 weeks ago he was going to quit his day job so that he could focus on "thing", however since that day there has been one excuse after another for not doing it. I have been responsible for all research, tech poc's, pitch deck, basically everything other than meeting and setting up pitches.
A few days ago we got a "no" from a seed VC - we had pitched them in November and had been through full DD and met all the partners, so I think we were kinda hopeful (but thats a post for another time). Now I was not involved in the "no" phone call so I am not certain what was said - however I have been told by CEO guy that "They don't like that the R&D will happen in ". I trust CEO guy but I do suspect he is being given an excuse, I think the real reason is that the VC can see that the CEO guy doesn't have any passion for what we are doing - if we have a meeting then nothing happens (like a thank you email)
Ask HN: Time to walk away?
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Re: Ask HN: Time to walk away?
#2unless I prompt it, every decision gets evaluated over and over, things that I could decide on a dime (like going all in, or who to bring on in partnership) have to take weeks to decide and then revisit over and over. We get direct feedback from VC's saying "we want to see a plan for x, y and z" and this somehow turns into us changing three things no one mentioned... Its like he is unable to make a choice and then turn that choice into action...
I suppose other than venting my real question is this: I have told CEO guy that he has to decide between "thing" and "day job" or we need to part ways. am I being precious or is this the right call?
Re: Ask HN: Time to walk away?
#3unless I prompt it, every decision gets evaluated over and over, things that I could decide on a dime (like going all in, or who to bring on in partnership) have to take weeks to decide and then revisit over and over. We get direct feedback from VC's saying "we want to see a plan for x, y and z" and this somehow turns into us changing three things no one mentioned... Its like he is unable to make a choice and then tu…
Should probably mention that when forced his plan was "to initially drop to 80% day job and 20% thing and see how it goes for a few months, and go all in once funded". I see this as a vote of no confidence and a lack of passion?
Re: Ask HN: Time to walk away?
#4unless I prompt it, every decision gets evaluated over and over, things that I could decide on a dime (like going all in, or who to bring on in partnership) have to take weeks to decide and then revisit over and over. We get direct feedback from VC's saying "we want to see a plan for x, y and z" and this somehow turns into us changing three things no one mentioned... Its like he is unable to make a choice and then tu…
Should probably mention that when forced his plan was "to initially drop to 80% day job and 20% thing and see how it goes for a few months, and go all in once funded". I see this as a vote of no confidence and a lack of passion?
The difference in actions between him being skeptical and having no passion is very thin to people like us on the outside that aren't experiencing this first hand. Both case would opt for not fully committing. The answer will be in the details, such as his wording when talking about certain subjects, his mood and expressions when brainstorming and discussing different aspects of the project. Maybe it's a little of both. The point is, it is pretty much impossible for us to tell whether it's lack of passion or lack of confidence that's keeping him from taking that leap of faith.
As far as how you should go about handling the situation, I'm afraid I can't offer too much help as I do not have any experience in this situation. However, I do not think it's unreasonable for you to be pressuring him to call your raise and carry his own weight. The best advice I can suggest is to probably straight up talk to him and explain your concerns. After all, you guys are founding a company together, so you should be able to have discussions such as these as if it's your spouse.
Good luck mate
Re: Ask HN: Time to walk away?
#5Bringing in an outsider to handle the "business" part of the business, especially when bestowed with a title like "CEO" over top of the original solo founder, is a recipe for a lopsided relationship. And it's somewhat unfair on your part to expect that another person can suddenly leap in with the same passionate drive you have for a product you built yourself for over a year. But honestly the fact that you're in different countries makes it that much worse.
Regardless, my understanding is that we're entering a dry period for capital in the tech business right now and investors are pulling back from tech startups in a big way.
If this is true, VCs are going to raise the bar quite high. A few years ago just the fact that you are in 2 different countries would be an automatic disqualification for many investors. And they can clearly see that not only are you collaborating remotely but you sourced someone and more or less put them in the driver's seat as your bizdev proxy.
I suppose the outlook was a lot more rosy back in Nov but it's frankly surprising that they even let you in the door in the first place. The investor gave you a very clear rational reason for backing out.
Your CEO's passion for your business isn't something you can force either. They see the risk as well. Unless your product is just mind blowing, which maybe it is given the interest, you're not going to raise money easily with this configuration.
You have a high bar in a difficult time, and a limp partner is the last thing you need. So yes you need to address this head on. Hopefully you can regroup, bootstrap a little longer and try again when you're on firmer ground
Re: Ask HN: Time to walk away?
#6There's always a risk with bringing someone onboard to work with you. The fact is, while many people say that they want to be an entrepreneur and want to be part of it, the initial passion can fizzle out fairly quickly when things get tough.
In my case, I've went through a few partners: 2 walked away and 1 have said that they're interested in learning but the time commitment is tough. Some people just aren't willing to put in everything that's required without really knowing that there's something in it for them.
What I've decided to do then is to take the lead and steer the ship until we hit revenue. My partners all have a full-time job so I can understand that putting extra hours in for something that may not turn out great is tough. That being said, I do appreciate their help.
In your case, is your partner willing to take a step back and let you guide things? It's important for you to be completely transparent and clarify things. If he's in, how in is he? What can you get from him and what do you need to give up for his help? Can he help you? Have that talk. Time is of the essence for a startup and you can't afford to keep things dragging along. Your family needs you.