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.
Why? Even at 35%, she's got much less equity than the original founder. If her market value is 80k, and they're taking salaries, what do you expect her to do? Talent is a marketplace. It isn't owed to anybody.
Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
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Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#12Ditch her. You don't need her and her screwy demands. That's pretty decent pay, I wouldn't have given her any equity. Do what you can to part ways as soon as you can.
Find another developer, on a contract no equity basis, if you can afford it somehow. If you can't you'll need to offer equity. Learning Python from scratch is an option but not a good one in my opinion. If you can afford to outsource, you can probably afford a semi-decent developer who is prepared to accept a decent sized share. Try and find someone who isn't going to screw you over, look worldwide and not just in your own backyard. As most of the work is done and you just need to get things refined to release an alpha or beta, it shouldn't take too much money in development costs. Then you can start whoring it out and getting some money to get things going.
I don't know what anyone else thinks but don't pay yourself. Invest all you can into the business. If it means you can only check on progress for an hour a day and you need to work part-time or full-time in Starbucks, then that's what you are going to have to do. Run it like you would a normal business. No one I know would have paid themselves that well before they've even started. If the idea and execution is good, it's a sacrifice worth making.
Good luck.
Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#13Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#14There may be some legal action you could take - did you sign a contract with the developer? It won't solve your problem but it may get you some money back so you can divert it to some other development. At the moment, I think you need to get an opinion from a real developer who can look at the code and the project design to see how long it would take to get it to the prototype stage. Depending on that I would try to…
There is a contract for the company set and equity structure.
Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#15Make sure you have milestones setup in your development process. If she said it would take 6 months then make sure at 4 months your developer is at a reasonable place, hell make sure at 2 months that they are, if they aren't then it's time to reconsider the contract.
If they estimated it would take 6 months to do then by 4 months 90% of the site should be done, the other 90% is the smaller fixes, tweaks etc that always take a long time but a good developer will have learned to account for these in their estimate, but you should have a functioning(although not totally) site that far in.
I'm not one for micromanaging or the non-technical boss watching over the hackers shoulder every 2 minutes getting in the way, but it really shouldn't have been allowed to drag on for 12 months without a product. After missing the first estimate without a full application(even if it was a buggy one) you are going to have serious problems and should be looking for someone else because they are either too inexperienced to estimate their own work, too inexperienced to break their estimates down, or not doing their work.
Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#16Earlier quoted context omitted.
Why? Even at 35%, she's got much less equity than the original founder. If her market value is 80k, and they're taking salaries, what do you expect her to do? Talent is a marketplace. It isn't owed to anybody.
because she agreed to 6% and $6,900/mo (a lot more than the founder) ... I think loyalty means something, be loyal to what you agree to; or quit... but don't hold the whole company hostage being selfish. I still stick with the "better off without her" mantra here.
Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#17Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#18This is a excellent wiki with lot of tutorial/information/samples about django http://code.djangoproject.com/wiki/Tutorials http://www.b-list.org/weblog/2006/nov/16/django-tips-get-mos.... http://www.b-list.org/weblog/2007/sep/04/django-accelerated/ http://www.slideshare.net/simon/advanced-django/ http://djangoplugables.com/ http://www.djangoproject.com/community/ http://djangobook.com http://showmedo.com/videos/video?name=1100000&fromSeries.... http://showmedo.com/videos/series?name=v7kABKL6R http://blog.disqus.net/2007/03/11/a-django-primer/ http://www-128.ibm.com/developerworks/linux/library/l-django....
Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#19There may be some legal action you could take - did you sign a contract with the developer? It won't solve your problem but it may get you some money back so you can divert it to some other development. At the moment, I think you need to get an opinion from a real developer who can look at the code and the project design to see how long it would take to get it to the prototype stage. Depending on that I would try to…
What legal action are you thinking he could take to force someone to work on a project? Even on consulting projects with defined statements of work and acceptance criteria, it is hard to recover up-front payments when projects go bad. This doesn't sound like a consulting gig; it sounds like an employment arrangement. Also, bear in mind that if he structured the company as an LLC, there's no such thing as an equity-ho…
Re: Ask YC: Startup crisis. Out of money and tech co-founder has bailed.
#20Lots of businesspeople manage low-equity (or no-equity) employees. Their business isn't jeopardized when one of them threatens to quit. Some of them are savvy enough to know how to keep projects small and focused and checkpointable, so they're never more than a milestone into the weeds and can always hand working code off to the next developer. Others simply pay more than 80k for a lead developer. Many of them pay large premiums to hired gun consulting teams who will deliver pro work without caring about equity.
80k may sound really expensive to you. For a startup, it kind of is. But it's right smack in the middle of the ballpark for an experience Python webdev. It doesn't sound like you were really doing this person a favor. Chances are, when she poked her head up and looked around a few months into the project, it seemed like she was doing all the work and taking a sucker's cut.
She doesn't have to be right about that. She gets to do whatever she wants. People renegotiate comp all the time. You didn't sell her. She left. Learn more about managing people before you hire or contract more of them.