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Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

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Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#71

Post by 71a54xd »

atatatat wrote: post #13
throwaway2a02 wrote: post #3

No, you should not. Chances of it working out are probably slim. You probably don't need funding, as many solo founders can attest. Hiring should be done once the business is already generating an income, and should be scaled based on that income. What happens is that if you do sell your house, (assuming you'll pay rent) things will get a lot more stressful for yourself financially, and this will severely hinder your…

This is an oft repeated trope — here's my issue: I'm B2B, and my clients don't want to hear "get back to you this weekend!" What then?

IndieHackers has turned into a garbage site as of late. The quality has plummeted and it's mostly people just desperately cold emailing thousands of people while making less than $3k a month.

Low key, in most cases those people would be better off selling fake healing crystals on Etsy.

Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#72

Post by dyingkneepad »

a-dub wrote: post #18

i don't think anyone i've ever known owned a house by 25.

OP is not from the USA. Income inequality is a thing, and properties are not ultra-expensive-compared-to-salary like in the US. Also, programmers often make a lot of money in some countries. My apartment was fully paid when I was 27, all with money from working for this one this one Big Corp which gave me a nice salary.

Also, they may have inherited it.

Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#74

Post by a-dub »

dyingkneepad wrote: post #72
a-dub wrote: post #18

i don't think anyone i've ever known owned a house by 25.

OP is not from the USA. Income inequality is a thing, and properties are not ultra-expensive-compared-to-salary like in the US. Also, programmers often make a lot of money in some countries. My apartment was fully paid when I was 27, all with money from working for this one this one Big Corp which gave me a nice salary. Also, they may have inherited it.

if the property-salary ratio is small, then what's the point of selling to fund a startup? sounds like it wouldn't provide much runway.

anyway, i don't mean to be judgemental. i'm just thinking aloud i guess, i've known a lot of computer people over the years and some have been spectacularly successful in industry, but i'm pretty sure that no one had substantial equity in property by that age. (or even a mortgage or deed)

to answer OP's question: i don't really know. conventional wisdom is that you should always find investors (not that you shouldn't have skin in the game) but that it's a gamble and they'll be better (and more prepared to take a loss) at making an educated bet than you are. that said, the technology sector is well known for nontraditional and unusual paths to success, so i suppose an argument could be made either way.

i guess the big question is: do you think you can do it and do you have the right people to help guide you along the way?

Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#75

Post by amozoss »

atatatat wrote: post #13
throwaway2a02 wrote: post #3

No, you should not. Chances of it working out are probably slim. You probably don't need funding, as many solo founders can attest. Hiring should be done once the business is already generating an income, and should be scaled based on that income. What happens is that if you do sell your house, (assuming you'll pay rent) things will get a lot more stressful for yourself financially, and this will severely hinder your…

This is an oft repeated trope — here's my issue: I'm B2B, and my clients don't want to hear "get back to you this weekend!" What then?

I've found the businesses I work with are very happy when I say I can get it to them by Monday. I often say this even when I know it will only take me an hour and it's Tuesday. Haven't had any issues.

Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#76

Post by quantified »

eaenki wrote: post #14

No. Basically zero chances any of your ideas will work. Even with funds and employees. I did a lot of side projects, maybe 30~ and 2 turned into companies which made me a great, great living and then failed for the most unexpected sh1t. I’m sorry but you either roll the dice a ton of times with extremely small amounts and hope for a big win Which is very unlikely or you have to play with other people’s money. In case…

If you’re really 24, you have plenty of time to accumulate and buy that house with your GF and dog. Assuming you only started earning at 18, next 6 years likely to far outpace the last.

Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#78

Post by sjducb »

No, here are some better ways.

1- Raise from VCs/Angels with just a pitch deck. Loads of people do this and there's lots of advice online. Big downside is that you give the VC most of the company. Big upside is low personal risk. If you really need to hire engineers immediately (despite being technical) then this is probably the only route.

2- Sell the product to a client before the product exists. Use the money the client pays you to build the product.

3- Save 70% of your income for a year, work evenings and weekends. Quit your job when you've got enough runway saved up.

4- Become a contractor, work 4 months for clients, 8 months on the startup.

5- Start the company with grant money. There are lots of grants for small tech business

I've worked for people who did all of these. Currently I'm trying #4.

Re: Ask HN: Should I sell my house to fund my startup? Anyone with the same story?

#79

Post by sjducb »

mustafa_pasi wrote: post #31

You should never risk you personal wealth on startup ventures, ever. Startups the SV way are hard to do, if you are not part of the bubble. As you said, you don't have an "in" so nobody is going to easily give you money. You have two options: 1. consider a different growth strategy, startups are not the only way to grow a business, focus less on growth and more on stable income, try to acquire at least one recurring…

You should never risk 100% of your personal wealth. Risking 10-20% is often a good idea.
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