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Unlike in the article where a contractor was promised payment and no payment was made, the cofounder here knows already that the company can’t pay until they ra
by jt2190 6mo ago
Unlike in the article where a contractor was promised payment and no payment was made, the cofounder here knows already that the company can’t pay until they raise funds, and has planned for this accordingly, by living off of personal savings or contract jobs. They also understand the risk they’ve taken on and are comfortable trading their time for possibly zero returns.
- gcr 6mo agoThank you. (FWIW it was an earnest question)
- jt2190 6mo agoYou’re welcome! Cofounders and founding engineers just don’t talk enough about how they model the financial risk of investing in a high risk asset like a startup, and how they make sure that they’re not taking on more risk than they can personally manage if things don’t work out. Approaches will vary by person and personal circumstances, so it’s also helpful to know what constraints they’re working with (like needing to house and feed their family).