3 ms·

Sounds like you aren't that confident if you think you are going to lose it! Really though, the main consideration is this: can your dad afford to take the hit

Sounds like you aren't that confident if you think you are going to lose it! Really though, the main consideration is this: can your dad afford to take the hit - and is he investing because he wants to help you or because he really believes in the idea? If he is investing in an idea he believes in, then you are doing a favor letting him invest. There are not many good opportunities for people to put their money to work in this economy considering the state of the stock and bond markets and the potential for inflation. OTOH, if he is investing because you are his son, then I would not take his money. I have heard horror stories of family and money from several close friends, and I know that your relationships are worth more than any investment. When it goes well it can make your relationship better, but if it goes south the downside is huge.

zbruhnke 16y ago
Thanks for the comment. In regards to my Dad, he truly believes in the idea and he is of the opinion that if I take it to the VC's who now own the company that acquired me they will take it and be the ones who make the money. I believe in my idea whole heartedly and in my mind there is no way it will not work, but I am also very hard on myself and I know if for some reason this venture failed I would feel terrible and probably even morally obligated to pay back the money even though it would be a total loss for me. Does that make any sense at all?
- gyardley 16y ago
  Based on this, don't take the money. Use your own money instead.
- gommm 16y ago
  So the other question, is how would you or they feel if you didn't take the money, took money from another inverstor and became successful? Would they feel bad that you refused their money when offered in good faith?
  - zbruhnke 16y ago
    That is exactly what my other reservation is ... my Dad especially would be too proud to invest after success at anything below the current valuation of the company (which could obviously be very high at that point) because he would feel like someone was giving him something and he is a man who works hard for everything he has made and simply does not believe in handouts. I would feel terrible if I took money from an outside VC and the company grew to even a $10-20M valuation knowing he could have gotten his money back tenfold but I would not let him.
zbruhnke 16y ago
btw in regards to confidence, the only thing I have ever been accused of is being too confident. I did everything I could to keep my last startup open including making hard decisions like toothpaste (so I could look clean for a meeting) or macaroni and cheese (so i could eat something). That was not because I could not do anything else it is because I believed in me and knew if I hung on it would work, in the end, it did. I refused to ask for any money back then and/or noone offered it (largely because they thought I was crazy i think) soo I have never been in a situation quite like this one where people come out of the woodwork wanting to hand it to me. It does not exactly help that I am a semi-celebrity in the city I live in (only about 250k people) even the new mayor-elect called me "possibly the smartest young man in the united states" in his acceptance speech the other day lol. Obviously that is not true, but I think those factors contribute to people wanting to bet on me.

zbruhnke 16y ago

Thanks for the comment. In regards to my Dad, he truly believes in the idea and he is of the opinion that if I take it to the VC's who now own the company that acquired me they will take it and be the ones who make the money. I believe in my idea whole heartedly and in my mind there is no way it will not work, but I am also very hard on myself and I know if for some reason this venture failed I would feel terrible and probably even morally obligated to pay back the money even though it would be a total loss for me. Does that make any sense at all?

gyardley 16y ago
Based on this, don't take the money. Use your own money instead.
gommm 16y ago
So the other question, is how would you or they feel if you didn't take the money, took money from another inverstor and became successful? Would they feel bad that you refused their money when offered in good faith?
- zbruhnke 16y ago
  That is exactly what my other reservation is ... my Dad especially would be too proud to invest after success at anything below the current valuation of the company (which could obviously be very high at that point) because he would feel like someone was giving him something and he is a man who works hard for everything he has made and simply does not believe in handouts. I would feel terrible if I took money from an outside VC and the company grew to even a $10-20M valuation knowing he could have gotten his money back tenfold but I would not let him.

zbruhnke 16y ago

btw in regards to confidence, the only thing I have ever been accused of is being too confident. I did everything I could to keep my last startup open including making hard decisions like toothpaste (so I could look clean for a meeting) or macaroni and cheese (so i could eat something). That was not because I could not do anything else it is because I believed in me and knew if I hung on it would work, in the end, it did. I refused to ask for any money back then and/or noone offered it (largely because they thought I was crazy i think) soo I have never been in a situation quite like this one where people come out of the woodwork wanting to hand it to me. It does not exactly help that I am a semi-celebrity in the city I live in (only about 250k people) even the new mayor-elect called me "possibly the smartest young man in the united states" in his acceptance speech the other day lol. Obviously that is not true, but I think those factors contribute to people wanting to bet on me.