4 ms·

Joining an early stage startup just for the experience?

Hacker news community, I am a longtime reader but first-time poster. I have been interested in startups since college, and I've had the opportunity to work for two Internet companies since graduating. My predicament is this: a few months ago I decided it was time to leave my previous job, as it was becoming a bit too "corporate" for me. About this same time, a friend of mine from work had an idea for starting a company and I decided to join him. I felt that his idea was solid, and I felt that it would be good experience for me even if it did not work out. For a couple months I helped him develop the idea, helped formulate a marketing plan, helped out on the sales side, etc. My primary motivation has not been financial but rather has been more about the experience of being in a very early-stage start-up and my passion for the underlying idea. Fast-forward to last week. I disagreed my partner on a key issue, and was told that as a result he wanted me to take a more minor role within the company. He is now requesting that I sign a contractor agreement that will provide minimal pay and no equity. My question to you is: if I am not primarily motivated by money, am I an idiot for accepting this agreement?

masterzora 15y ago
Yes. If this is his conflict resolution system, I can't imagine that this is going to work out very well.
- throwaway_12345 15y ago
  Yes, the experience last week raised a few red flags for me. I thought I knew him and his working style, but I guess I was wrong. Thanks for the feedback.
  - abbasmehdi 15y ago
    I am sure we are hearing only one side of this story, however it seems to me that this is the beginning of the end. I say this because the trust, which is everything for partners, seems to be gone, and you have been proven replacable (and thus only marginally valuable). I'd suggest save the friendship (whatever is left of it), and move on as quickly and painlessly as possible. See if you can keep some equity in exchange for your initial work, but not play an active role anymore (you will not be happy with him or with the company after your demotion, you will see it as something you helped build and got kicked out of). You can turn this around by getting some equity, thus being a silent and inactive stakeholder, and exiting quietly (you got more than you ever wanted - experience plus money, and he got rid of you without giving away too much).
amirmc 15y ago
> helped out on the sales side ... more minor role These comments make me think that the company already has revenues of some kind and also that you're not the only two people working there. Is that the case?
- throwaway_12345 15y ago
  We have a sales guy who is solely focused on biz dev. He is paid on a straight commission. After our disagreement last week, my partner decided to hire someone else to help out with marketing, which was previously exclusively my domain. I do think we need help, but the way this hire happened was far from ideal.
  - amirmc 15y ago
    I'd take a step back at this point and think about what it was you wanted when you first joined. Signing something at this point would clearly put your relationship on a legal footing as a contractor, when I get the impression that you feel more like a partner. IANAL.
- throwaway_12345 15y ago
  We do not have revenues yet as we have not launched. The plan is for that to happen in the next month.
DevX101 15y ago
he wants to fire you, but not come out and say it directly. were you offered/receiving pay/equity prior to the disagreement?
- throwaway_12345 15y ago
  Yeah, that's what I thought too. I asked him straight out if he wanted me out (I tried to quit), but he said he wanted me around and that I could still gain experience from being part of the team. I was not receiving pay prior to the disagreement, but was promised equity. The percentage was never discussed as that truly was not why I wanted to be in this. We have been friends for a few years and I don't think he wants this to affect our friendship.
qq66 15y ago
If you already have equity, talk to a lawyer and leave. If you don't have equity, just leave.

masterzora 15y ago

Yes. If this is his conflict resolution system, I can't imagine that this is going to work out very well.

throwaway_12345 15y ago
Yes, the experience last week raised a few red flags for me. I thought I knew him and his working style, but I guess I was wrong. Thanks for the feedback.
- abbasmehdi 15y ago
  I am sure we are hearing only one side of this story, however it seems to me that this is the beginning of the end. I say this because the trust, which is everything for partners, seems to be gone, and you have been proven replacable (and thus only marginally valuable). I'd suggest save the friendship (whatever is left of it), and move on as quickly and painlessly as possible. See if you can keep some equity in exchange for your initial work, but not play an active role anymore (you will not be happy with him or with the company after your demotion, you will see it as something you helped build and got kicked out of). You can turn this around by getting some equity, thus being a silent and inactive stakeholder, and exiting quietly (you got more than you ever wanted - experience plus money, and he got rid of you without giving away too much).

amirmc 15y ago

> helped out on the sales side ... more minor role These comments make me think that the company already has revenues of some kind and also that you're not the only two people working there. Is that the case?

throwaway_12345 15y ago
We have a sales guy who is solely focused on biz dev. He is paid on a straight commission. After our disagreement last week, my partner decided to hire someone else to help out with marketing, which was previously exclusively my domain. I do think we need help, but the way this hire happened was far from ideal.
- amirmc 15y ago
  I'd take a step back at this point and think about what it was you wanted when you first joined. Signing something at this point would clearly put your relationship on a legal footing as a contractor, when I get the impression that you feel more like a partner. IANAL.
throwaway_12345 15y ago
We do not have revenues yet as we have not launched. The plan is for that to happen in the next month.

DevX101 15y ago

he wants to fire you, but not come out and say it directly. were you offered/receiving pay/equity prior to the disagreement?

throwaway_12345 15y ago
Yeah, that's what I thought too. I asked him straight out if he wanted me out (I tried to quit), but he said he wanted me around and that I could still gain experience from being part of the team. I was not receiving pay prior to the disagreement, but was promised equity. The percentage was never discussed as that truly was not why I wanted to be in this. We have been friends for a few years and I don't think he wants this to affect our friendship.

qq66 15y ago

If you already have equity, talk to a lawyer and leave. If you don't have equity, just leave.