Ask YC: Startup crisis. Out of money and tech co-founder has bailed.

Looking for YC advice:

I am the non technical co founder of a startup, which has been in development mode for 12 months. I took a $30,000 loan and raised some $160,000 in funding from friends and an angel to develop an idea to the proof of concept stage. I found a Django technical developer 14 months ago, and initially have paid her $6900 a month and 6% of the company equity to build a decent prototytpe, with an expectation of ratching it up in the longer term. She quoted it would take her 6 months of full time work to do this.

4 months into development, she threatened to bail on the project and raise funding for her own startup idea unless I increased her equity stake to 35%. I was initially very upset by this change, as I had been up front and honest from the beginning and I didn't like the idea of switching terms midway through the project. I felt there was an asymmetry in our risk, as I quit my nursing job to do this and raised all the capital. She also refused to take a pay cut in return for the equity. I had limited alternative developer options to leverage in the situation.

I eventually agreed because without a proof of concept,I knew we wouldn't make it, and it seemed we were getting close to launch. I thought I would rather have a real partner than a long term contract developer, and adjusted to the concept if both being in it full time. I have taken a 55% pay cut to work on the startup, and have been paying myself $3000 a months, which comes to about $2400 incomes after taxes.

12 months later, we have a partially complete web app, have run out of money, and she has bolted back to her contract gigs. She hasn't finished the work to the point where I can do a beta, as the alpha feedback has not been incorporated into the software.

She refuses to invest any of her own money into the idea, I don't want to "get a real job" because I won't be able to work on the startup idea. I have very little money left in the bank. Raising more capital is really hard, because we haven't executed on our milestones. I refuse to give up on the idea, and I know that the window of opportunity is only a few months.

I am considering outsourcing the development to India, so I can get it to a releasable state. I have the source code and am also considering learning Django from scratch: How hard would that be?

Where should I go from here? Any thoughts gratefully received.

drinko

Learning Django isn't difficult at all. If anything, learning Django will be a huge benefit even if you do find a Django coder. Not only will you be able to convey your ideas more efficiently by having an understanding of code, but I'm sure your coder won't feel as much of a slave. Learn Python first: http://openbookproject.net//thinkCSpy/ and for Django: http://www.djangobook.com/

If you're really dedicated to continue with the startup idea, and want to complete your first beta, I'm not sure waiting to learn Django, getting your feet wet, and developing proficient skills to actually continue the project would be the best idea, as it would hinder you from launching quickly, if that's your desire. So, although you may decide to do it on your own, you should be actively looking for coders.

If you're really out of cash, and you have no family/other sources to borrow or raise money from, and you need money, then maybe a part time job to start generating some sort of revenue may serve well.

Also, go to your local Django camps, check out djangogigs.com, get on listservs, find the Django Google group and post there. Not using Django should be an option as well, if you happen to come across that gem of a coder who's willing to take the load and doesn't code in Djnago. Also, applying to YC could be an option. If you do have some sort of prototype to show, and are willing to learn to program, you could be paired up with a group, of course that's all speculation.

Just don't get stuck in a rut of depression. Be rational, and exercise some damage control, because down the road, you'll probably find yourself in a more unforgiving storm.

I think she made a "douche-move" by upping her equity forcefully while still taking $6,900/mo - To be honest no matter the turn out your better without her cause she is lacking integrity.

I think you need to find a new technical co-founder. Or, raise more investment. Neither of these are easy of course, but startups are tough.

You probably have to really love your idea in order to stick with it. Reading your post made me think about the most recent PG essay ("be good"):

http://paulgraham.com/good.html

Specifically, this quote:

The added confidence that comes from trying to help people can also help you with investors. One of the founders of Chatterous told me recently that he and his cofounder had decided that this service was something the world needed, so they were going to keep working on it no matter what, even if they had to move back to Canada and live in their parents' basements.

Once they realized this, they stopped caring so much what investors thought about them. They still met with them, but they weren't going to die if they didn't get their money. And you know what? The investors got a lot more interested. They could sense that the Chatterouses were going to do this startup with or without them.

i am near Tulsa, Oklahoma.

We have a prototype, but not one I would be able to release, as it needs a lot of user interface refining.

It is an online web app service for patients with chronic conditions that helps them manage their problems and has some social network features. (I am a nurse)