9 ms·

Is there any feedback if investors would prefer to get some of their money back or see you roll the dice on another pivot?

ocdtrekkie 10y ago
Arguably, if they'd like you to roll the dice on another project, they can always just... invest in your next project.
- bredren 10y ago
  ...with a clean cap table.
- holtalanm 10y ago
  isn't that what they are doing? They are dissolving the old project, and returning investments. Some of the investors have pledged to reinvest in this new project, that is completely new and separate from the old project. Thats how it sounds to me, at least. Doesn't sound shady.
philip1209 10y ago
Had this discussion with the investors. I plan on exploring a different idea in a different space with a new founding team. The investors suggested restarting the corporate structure, and some have committed to reinvesting the money into the new company.
- nikanj 10y ago
  That..that sounds a bit like "me and the investors decided to kick out the other founders with zero compensation". This /might/ be a nasty setting for lawsuits later, if newco turns into a unicorn.
  - philip1209 10y ago
    This isn't the case, and there is no newco at this time. Unfortunately, I had to lay off all of employees today. In addition, we are liquidating any IP, closing customer accounts, paying out our cash, and dissolving the corporation.
    - godzillabrennus 10y ago
      HR is a hard space. Sorry you had to go through all of the downside of a business not working out. It probably means next to nothing today but this experience will make you more successful in you future endeavors. Good luck on your next chapter!
  - Alex3917 10y ago
    > That..that sounds a bit like "me and the investors decided to kick out the other founders with zero compensation". It would be wildly unethical and probably also illegal to use investor money to 'compensate' the founders when shutting down the business.
    - nikanj 10y ago
      This is how your side would frame the issue. The opposing side would do their best to portray events as if you and the investor had identified a billion-dollar idea, and done shady manouvering to clean the cap table.

ocdtrekkie 10y ago

Arguably, if they'd like you to roll the dice on another project, they can always just... invest in your next project.

bredren 10y ago
...with a clean cap table.
holtalanm 10y ago
isn't that what they are doing? They are dissolving the old project, and returning investments. Some of the investors have pledged to reinvest in this new project, that is completely new and separate from the old project. Thats how it sounds to me, at least. Doesn't sound shady.

philip1209 10y ago

Had this discussion with the investors. I plan on exploring a different idea in a different space with a new founding team. The investors suggested restarting the corporate structure, and some have committed to reinvesting the money into the new company.

nikanj 10y ago
That..that sounds a bit like "me and the investors decided to kick out the other founders with zero compensation". This /might/ be a nasty setting for lawsuits later, if newco turns into a unicorn.
- philip1209 10y ago
  This isn't the case, and there is no newco at this time. Unfortunately, I had to lay off all of employees today. In addition, we are liquidating any IP, closing customer accounts, paying out our cash, and dissolving the corporation.
  - godzillabrennus 10y ago
    HR is a hard space. Sorry you had to go through all of the downside of a business not working out. It probably means next to nothing today but this experience will make you more successful in you future endeavors. Good luck on your next chapter!
- Alex3917 10y ago
  > That..that sounds a bit like "me and the investors decided to kick out the other founders with zero compensation". It would be wildly unethical and probably also illegal to use investor money to 'compensate' the founders when shutting down the business.
  - nikanj 10y ago
    This is how your side would frame the issue. The opposing side would do their best to portray events as if you and the investor had identified a billion-dollar idea, and done shady manouvering to clean the cap table.