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I had to lay off two people when a failed venture ran out of funding by surprise (the angel investor had committed to $x dollars per month for 6 months, but wen
by jakejake 11y ago
I had to lay off two people when a failed venture ran out of funding by surprise (the angel investor had committed to $x dollars per month for 6 months, but went back on the contract at month 4 - even though we had launched the product exactly on schedule.) we were launching and raising funds when our runway turned into a brick wall.
I felt mad because my team and I had worked crazy hours to pull off a miracle and the reward was everybody lost their job literally 1 week after the launch. I totally understand that raising capital has more uncontrollable variables than programming - I have to admit I was a bit angry that the other end of the company didn't meet the ass-kicking standard of the tech side.
I referred both guys to other jobs, one of whom took one of the offers. The other was a master UX guy so I was extremely bummed to not have him on a team with me anymore. He could get any gig he wanted in the blink of an eye, so it was no great loss to him.
It really does suck on both sides.
- jedberg 11y agoI'd say you had a valid excuse for not paying severance. Also, I suspect you've learned your lesson to never accept investment in payments, or alternatively, unless it's in the bank it doesn't count. :) That was a pretty dick move on the part of the angel. Did they say why they stopped paying?
- jakejake 11y agoI was in the loop, but not personally involved in the financial details. I actually didn't know we were being kept on a leash like that. We suspected it was a turn of fortunes with the investor - some negative stock stuff had happened in their area (oil). We had a contract but, it's not like we were going to sue them with no money. You'd think with a contract and a legitimate investor that you're ok, but it really is all hot air until the money is in your account.