Brutal Startup Failure • Hacker News Board

Re: Brutal Startup Failure

#11

Post by theHolyTrynity » Tue, Oct 01, 2024, 7:34 AM UTC

ANarrativeApe wrote: post #4

This happens way more often than you might think. Congratulations on surviving to tell the tale, and best of luck with your next venture. These lessons will stand you in good stead, provided you recognize that this is only one way to kill a startup. Trust me, there are oh so many more... (and product market fit is a necessary condition, but unfair advantage is where it is at)

thanks, I know that this happens frequently. But at the same time it feels so sad to shut down a company that was indeed starting to see pmf

Re: Brutal Startup Failure

#12

Post by theHolyTrynity » Tue, Oct 01, 2024, 7:35 AM UTC

carlosjobim wrote: post #9

> The co-founder demanded 10x what we could afford and threatened to sue the investor. When this happens, you have to invert the offer and say that he can pay you that amount for you to leave instead.

We did it.

I proposed to give him my shares for FREE. He refused, knowing it was not capable of running the business.

On one hand, he told me the business value was in the millions. On the other, he would not buy the entire business for free.

Also, he always knew he could get some money suing the investor

Re: Brutal Startup Failure

#13

Post by theHolyTrynity » Tue, Oct 01, 2024, 7:37 AM UTC

noworriesnate wrote: post #10

What about just founding the next one alone? Will VCs still invest in that?

Yes, next time I will think very carefully about which investors to involve.

Disclaimer: I am not in a startup / tech hub. I realized that there are many more investors outside my geography. Professional investors.

Indeed I am leaving my country and starting new in another place

Re: Brutal Startup Failure

#14

Post by bitbasher » Tue, Oct 01, 2024, 4:55 PM UTC

Sounds like a solid learning experience.

It's also why I am incredibly hesitant to have a co-founder and it's why I went the bootstrapped approach instead of VC funding from the start.

Re: Brutal Startup Failure

#15

Post by uptownfunk » Tue, Oct 01, 2024, 8:20 PM UTC

It sucks, the people are everything. Integrity and execution are the main ingredients. The rest is luck. But no integrity or no execution and you implode. You literally just need integrity and execution.

Re: Brutal Startup Failure

#16

Post by rkowal » Wed, Oct 02, 2024, 4:31 AM UTC

This - co-founder conflict - is the #1 reason startups fail. Went through something very similar 2023-2024: legal, emotional drama, conflict, losing $$$ (legal, putting $$ into the company), another co-founder leaving

it's hard and brutal especially for first-time cofounders, but it's part of the process

Re: Brutal Startup Failure

#17

Post by theHolyTrynity » Wed, Oct 02, 2024, 7:04 AM UTC

rkowal wrote: post #16

This - co-founder conflict - is the #1 reason startups fail. Went through something very similar 2023-2024: legal, emotional drama, conflict, losing $$$ (legal, putting $$ into the company), another co-founder leaving it's hard and brutal especially for first-time cofounders, but it's part of the process

Glad to hear I am not the only one...

It sucks for the time that it takes away from building a company. And it is one of the reasons I'll probably go for a standard job before starting a new one

Re: Brutal Startup Failure

#18

Post by theHolyTrynity » Wed, Oct 02, 2024, 7:04 AM UTC

uptownfunk wrote: post #15

It sucks, the people are everything. Integrity and execution are the main ingredients. The rest is luck. But no integrity or no execution and you implode. You literally just need integrity and execution.

agree, if you get these two right product market fit will follow

Re: Brutal Startup Failure

#19

Post by theHolyTrynity » Wed, Oct 02, 2024, 7:06 AM UTC

bitbasher wrote: post #14

Sounds like a solid learning experience. It's also why I am incredibly hesitant to have a co-founder and it's why I went the bootstrapped approach instead of VC funding from the start.

yeah, problem is that is extremely hard to do it alone

My approach for the future: - Don't raise unless you really need to scale. Bootstrap as long as you can - Co-founders are ok, but with very clear pacts and shareholders agreement to manage conflicts

Re: Brutal Startup Failure

#20

Post by yellow_lead » Wed, Oct 02, 2024, 3:06 PM UTC

Sad to see this but thanks for posting as a cautionary tale. I think you made the right decision to resign. Hope you take care of your mental health and have some much needed rest!