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This is extremely selfish. A founder has a team (investors are part of that team) that trusts each other to have incentives towards having the startup make it
by throwawayarnty 4y ago
This is extremely selfish.
A founder has a team (investors are part of that team) that trusts each other to have incentives towards having the startup make it big.
Ditching the team and investors like that is extremely distasteful and shows that the founder does not have the qualities to be a leader.
The founder didn’t do the right thing, he did the selfish thing by throwing his employees under the bus.
- Simon_O_Rourke 4y ago> The founder didn’t do the right thing, he did the selfish thing by throwing his employees under the bus. How is leaving them in their more secure day jobs rather than binding then to a likely failed company throwing anyone under the bus? This founder did the smart thing, and probably did what was best for everyone involved.
- new299 4y agoIn this case it seems like he didn't have any full-time employees, so there isn't the employee issue. But I'm curious as to how this might effect investors generally. I assume it could make them look bad, and cause issues with the fund LPs? I.e. you announced an investment, did a capital call and then suddenly the money gets returned. LPs might get annoyed that money is now sitting in the fund accounts collecting interest? or I guess it just makes the fund look bad generally?
- menzoic 4y agoSounds better than burning the funds into a startup failure
- jokethrowaway 4y agoThe existing investors lost money, everyone else paid in stress and overwork
- Ma8ee 4y agoThe “employees” had other day jobs. Why is it less selfish to spend other people’s time and money on a company that you can’t see any way for it to succeed than cutting everyone’s losses as soon as possible?
- lwhi 4y agoNo. I think what you mean to say is, it's an extremely terrifying situation for an investor. By the end of the article, I wonder whether there weren't actually fixable problems. I was left wondering whether I would have made the same decision. However, it's essential we all have the freedom and agency to choose how to live our lives This is the choice the author made, and it's blatantly obvious that the decision needs to be respected.
- andi999 4y agoWhy does it need to be respected? Why not e.g. sell the company and IP.