Dear SaaStr: What Happens if One Founder Wants to Quit When the Startup Has Just Raised VC Funding?
This, unfortunately, is more common that you might think.
First, be completely upfront with your investors immediately. As horrible as this is, it’s not the first time. Let them know, and let them know you are working on it.
Basically, you have 2.5 options:
- Find a replacement “founder”. While this isn’t literally possible, by that I meant someone who can operate at a very senior role and carry the founder-level emotional and leadership role. If you have a few million in the bank, your vision is interesting, and you are charismatic — you can figure this out.
- Fake it for a while. This really is the 0.5 option and doesn’t really work for too long. But sometimes, you can fake it (have the co-founder hang around for a while, at least nominally) until you can find his/her replacement, see above point. Sometimes this is better than the founder just leaving that day. Sometimes it’s better for everyone to see a slow disengagement rather than an immediate departure.
- Return the capital (or I guess, try to engineer an acqui-hire). If you are unable to make it without the co-founder, and unable to recruit a team to replace him or her — give back what’s left of the capital. My guess is this isn’t the right option here b/c you wouldn’t have gotten the capital in the first place if there wasn’t something there beyond just this co-founder. But if you can’t make it happen without him or her, let the investors know you want to return what’s left of their capital.
This does happen. And it’s your fault for picking the wrong co-founder. At least, it’s your fault too by definition.
Go find someone better to replace him or her. That’s your job. Or better yet, since you have a few million in the bank … go find 2 or 3 better people to replace this mistake.
A related post here:
(see ya later image from here)
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.saastr.com/dear-saastr-what-happens-if-one-founder-wants-to-quit-when-the-startup/
- :has
- :is
- :not
- a
- above
- an
- and
- ARE
- around
- AS
- At
- back
- Bank
- BE
- Better
- Beyond
- but
- by
- CAN
- capital
- carry
- charismatic
- Co-founder
- Common
- completely
- day
- definition
- do
- does
- Doesn’t
- emotional
- engineer
- everyone
- fake
- few
- Figure
- Find
- First
- first time
- For
- founder
- from
- funding
- Give
- Go
- Hang
- happen
- happens
- Have
- her
- here
- him
- HTTPS
- i
- if
- image
- immediate
- immediately
- in
- interesting
- Investors
- IT
- Job
- just
- Know
- later
- Leadership
- least
- leaving
- left
- let
- Long
- make
- meant
- might
- million
- mistake
- more
- my
- of
- on
- ONE
- operate
- Option
- Options
- or
- out
- People
- Place
- plato
- Plato Data Intelligence
- PlatoData
- Point
- possible
- Post
- raised
- rather
- really
- recruit
- related
- replace
- replacement
- return
- right
- Role
- see
- senior
- since
- slow
- Someone
- something
- startup
- team
- than
- that
- The
- The Capital
- their
- Them
- There.
- Think
- this
- time
- to
- too
- try
- unable
- unfortunately
- until
- VC
- VC funding
- very
- vision
- want
- wants
- What
- when
- while
- WHO
- with
- without
- Work
- working
- Wrong
- yet
- you
- Your
- zephyrnet
More from SaaStr
How to Gracefully Ask a VC To Leave Your Board | SaaStr
Source Node: 2551282
Time Stamp: Apr 19, 2024
Dear SaaStr: What Happens When a VC Loses All Their Money on a Startup Investment?
Source Node: 1901931
Time Stamp: Jan 17, 2023
Don’t Sell SaaS Like It’s 2012 with Reprise Co-Founder Evan Powell and Glasswing Ventures Founder & Managing Partner Rudina Seseri (Video)
Source Node: 1914141
Time Stamp: Jan 23, 2023
TOMORROW! Learn from the VPEs of Box, Datadog, Coda, Gusto, Atlassian and More!!
Source Node: 889347
Time Stamp: Jun 9, 2021
Dear SaaStr: Should I Include Professional Services In My ARR Calculation?
Source Node: 1857569
Time Stamp: Jul 6, 2021
A Simple Guide To Being in the Top 25% of Sales Professionals | SaaStr
Source Node: 2299275
Time Stamp: Sep 29, 2023
6 Steps to Managing Marketing Hyper-Growth at Scale with Klayvio Global Head of Marketing Kady Srinivasan (Pod 525 and Video)
Source Node: 1601407
Time Stamp: Feb 4, 2022
Dear SaaStr: What is The Typical Conversion from Paid Pilot to Annual Contract in SaaS?
Source Node: 1878708
Time Stamp: Oct 25, 2021
Dear SaaStr: What Should a CEO Look For in Hiring a Fractional or Part-Time Chief Marketing Officer?
Source Node: 1976379
Time Stamp: Feb 24, 2023
Zoom at $4.5B in ARR: Enterprise is Growing 24%, But SMB Churn is Dragging Overall Growth Down to … 1% for 2024
Source Node: 1984646
Time Stamp: Feb 28, 2023
Dear SaaStr: I am Leaving a Startup I Co-Founded on Good Terms. Should I Resign my Board Seat?
Source Node: 1910804
Time Stamp: Jan 21, 2023