Ask HN: My startup is running out of fund. What should I do?

#1

Post by whentojoin » Sun, Oct 30, 2022, 3:43 AM UTC

My startup is running out of fund soon. We have no revenue and failed to raise external capital. Our product development is almost done, but we need a lot of money to launch our product to market (we are in fintech business). We don't have that amount of money, and it is not even close.

So the real question is what to do after the company die? If I keep working on this, the company can stay in zombie mode for years. I honestly think we should shut the company down. My cofounder is telling me if I don't keep working on this startup (using the money out of my cofounder & me's pocket after the company die), then I am being guilty to him, guilty to current investors and guilty to employees, because I am not all in.

What are your guys thought?

Re: Ask HN: My startup is running out of fund. What should I do?

#2

Post by koyanisqatsi » Sun, Oct 30, 2022, 3:54 AM UTC

Shut it down and move on.

Re: Ask HN: My startup is running out of fund. What should I do?

#3

Post by whentojoin » Sun, Oct 30, 2022, 4:04 AM UTC

koyanisqatsi wrote: post #2

Shut it down and move on.

My cofounder tells me I am guilty if I don't stick with him keep building, even if it is something else. He quit his job to join me, and I am wasting his years of life if I quit.

I am wondering if I am being a bad person.

Re: Ask HN: My startup is running out of fund. What should I do?

#4

Post by ohitstyler » Sun, Oct 30, 2022, 4:07 AM UTC

You could work part-time to help support project. But you need a new opportunity to pay your bills etc.

Re: Ask HN: My startup is running out of fund. What should I do?

#5

Post by whentojoin » Sun, Oct 30, 2022, 4:13 AM UTC

ohitstyler wrote: post #4

You could work part-time to help support project. But you need a new opportunity to pay your bills etc.

It needs millions of dollars to launch the product though.

Re: Ask HN: My startup is running out of fund. What should I do?

#6

Post by mudrockbestgirl » Sun, Oct 30, 2022, 4:22 AM UTC

whentojoin wrote: post #3

koyanisqatsi wrote: post #2

Shut it down and move on.

My cofounder tells me I am guilty if I don't stick with him keep building, even if it is something else. He quit his job to join me, and I am wasting his years of life if I quit. I am wondering if I am being a bad person.

You are not a bad person because of that. It was his decision, and joining an early-stage startup comes with exactly the kind of risks you are describing. If he was not aware of that, that's completely his fault for making bad uninformed decisions.

The fact that he tries to make you feel guilty is a huge red flag. Do you really want to work with that kind of person in the long term?

Re: Ask HN: My startup is running out of fund. What should I do?

#7

Post by andirk » Sun, Oct 30, 2022, 4:22 AM UTC

My favorite sticky floor local dive bar shuttered at first blush of the pandemic. We've all been waiting with promises of an opening around the corner. I finally got the skinny: owner took the moment to do much needed deep repairs, gutting the whole place. But he needed more money to get it back up and running. So he took out a loan, and then another. Now it's not finished and he can't get any more financing. Wtf is he going to do?? I say open the bar in the bar's parking lot is what.

Similar to you, you ran out of runway and have seemingly nothing of substance to end users or investors alike. Take what you can from your code and pack it up. Keep your network of smart people around you in good favor. This one is done. Try again. Maybe a very similar product or wildly different. No zombie'ing! Your time and life are valuable. Use it as such.

Re: Ask HN: My startup is running out of fund. What should I do?

#8

Post by andirk » Sun, Oct 30, 2022, 4:23 AM UTC

whentojoin wrote: post #3

koyanisqatsi wrote: post #2

Shut it down and move on.

My cofounder tells me I am guilty if I don't stick with him keep building, even if it is something else. He quit his job to join me, and I am wasting his years of life if I quit. I am wondering if I am being a bad person.

He can get another job. I feel his and your pain, but give me a break.

Re: Ask HN: My startup is running out of fund. What should I do?

#9

Post by whentojoin » Sun, Oct 30, 2022, 4:46 AM UTC

mudrockbestgirl wrote: post #6

whentojoin wrote: post #3

Earlier quoted context omitted.

My cofounder tells me I am guilty if I don't stick with him keep building, even if it is something else. He quit his job to join me, and I am wasting his years of life if I quit. I am wondering if I am being a bad person.

You are not a bad person because of that. It was his decision, and joining an early-stage startup comes with exactly the kind of risks you are describing. If he was not aware of that, that's completely his fault for making bad uninformed decisions. The fact that he tries to make you feel guilty is a huge red flag. Do you really want to work with that kind of person in the long term?

That's the thing I am pondering about. He tells me if I don't keep do a startup now the next time I do it will be like 5-10 years later. I will have kids, etc.

But I know say if I take a break of say 1-2 years I can start a new startup, whether I have a family or not. I might even do some side projects even before then and see how it goes.

I am wondering if he says that out of his self interest or for me.

Re: Ask HN: My startup is running out of fund. What should I do?

#10

Post by whentojoin » Sun, Oct 30, 2022, 4:49 AM UTC

andirk wrote: post #7

My favorite sticky floor local dive bar shuttered at first blush of the pandemic. We've all been waiting with promises of an opening around the corner. I finally got the skinny: owner took the moment to do much needed deep repairs, gutting the whole place. But he needed more money to get it back up and running. So he took out a loan, and then another. Now it's not finished and he can't get any more financing. Wtf is…

That's really good advice. I only have 1 life.