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Ask HN: How long does an investor own your time/ideas?
Lets say you are a solo founder and you've taken a small angel investment or other funding (seed, YC, other incubator, etc..) and you've pivoted A times over the course of B months and you're ready to move on and try something else.
Is it unethical to quit and try to raise funding for another startup idea?
Does it depend on what A,B are? e.g. its ok after 5 years, but not after 5 months?
At what point do your initial investors no longer own your time/ideas?
- pg 14y agoUsually you can quit when the funding runs out. Founders sometimes voluntarily keep a startup alive past the end of the proverbial runway, e.g. by taking on consulting projects, but no investor is entitled to demand that.
- throwaway717 14y agoThanks! I know YC doesn't care how you spend the money granted, but I imagine that angel/seed funding of larger amounts probably comes with expectations (either implied or explicit) regarding the founders' salary which would inversely correlate with remaining runway. I'll have to read up more on salary expectations for seed/angel funded startups.
- samchockalot 14y agoInvestors expect most of their investments to fail. This is not a shocking situation for them, however disappointing. Whatever salary you need to live on is fair to pay yourself. Anything under $100k is safe. Under $80k is ideal. It really depends on your cost of living. This is something you really should discuss with investors upfront, especially if you have high requirements. It's far more painful for you than for them. They're diversified - you're not. Return as much money as possible (sell any assets you can). Even a token amount will have some meaning. Shut the company down gracefully. Be nice to your users. Have a very frank conversation with your investors. Tell them how you feel. Thank them for their support. The way you handle your failure will largely determine how you and your investor(s) will feel about it going forward. You're not a bad person for failing. Now go succeed this time!