New ask Hacker News story: Ask HN: Need advice about co-founding a startup with a VC and equity
Ask HN: Need advice about co-founding a startup with a VC and equity
5 by torynoter2832 | 5 comments on Hacker News.
In the last few months I've been working as an Entrepreneur in Resident with a VC in New York that incubates companies. The deal was that we'll co-found a startup together, they will lead our seed round ($2.8M) and help me build the company. I'll be the main person working full-time on the company and the VC partners will take the CEO role but will work part time on the startup. Both VC partners have extensive experience as successful startup co-founders and CEOs. At the beginning it seems like a great deal. I'll get to work closely with three serial entrepreneurs and build a startup with them. They will bring a clear playbook and help with the Go To Market (I'm an engineer so that's my weakness) But after a few months, it's very clear that I'll be doing everything in the startup. Initially I thought they'll manage the entire go to market and sales, but up until now I had to do everything. Their contribution is providing advice when needed and having a 2 hour meeting with me every week to discuss everything. While the time with them is very helpful, I can't shake the feeling that if I'm doing 99% of the work + came up with the idea, I'm better of finding a co-founder and start my own company. Right now I get only 10% equity. What do you think? Here are the pros: * Salary from the first day ($150k/year while I was making $300k/year before that) * Raise funding easily ($2.85M at day 1) and they seem to be able to raise future rounds with ease (after all they are VC) * Get to do my dream role - found a startup - with lower risk (salary + help) * Work with 3 incredible guys that I trust and that co-founded several successful companies (as founders not investors). * Their advice is very helpful and I get a lot of freedom. They do not try to tell me what to do, but rather support my journey. * I get 10% equity post the Seed dilution * I attain very valuable experience and learn a lot Cons: * Only 10% while I'm doing most of the work. * Not the CEO even though I'm doing the CEO job. * No control over the company (they can fire me at any time). * Their investment time-wise is not huge.
5 by torynoter2832 | 5 comments on Hacker News.
In the last few months I've been working as an Entrepreneur in Resident with a VC in New York that incubates companies. The deal was that we'll co-found a startup together, they will lead our seed round ($2.8M) and help me build the company. I'll be the main person working full-time on the company and the VC partners will take the CEO role but will work part time on the startup. Both VC partners have extensive experience as successful startup co-founders and CEOs. At the beginning it seems like a great deal. I'll get to work closely with three serial entrepreneurs and build a startup with them. They will bring a clear playbook and help with the Go To Market (I'm an engineer so that's my weakness) But after a few months, it's very clear that I'll be doing everything in the startup. Initially I thought they'll manage the entire go to market and sales, but up until now I had to do everything. Their contribution is providing advice when needed and having a 2 hour meeting with me every week to discuss everything. While the time with them is very helpful, I can't shake the feeling that if I'm doing 99% of the work + came up with the idea, I'm better of finding a co-founder and start my own company. Right now I get only 10% equity. What do you think? Here are the pros: * Salary from the first day ($150k/year while I was making $300k/year before that) * Raise funding easily ($2.85M at day 1) and they seem to be able to raise future rounds with ease (after all they are VC) * Get to do my dream role - found a startup - with lower risk (salary + help) * Work with 3 incredible guys that I trust and that co-founded several successful companies (as founders not investors). * Their advice is very helpful and I get a lot of freedom. They do not try to tell me what to do, but rather support my journey. * I get 10% equity post the Seed dilution * I attain very valuable experience and learn a lot Cons: * Only 10% while I'm doing most of the work. * Not the CEO even though I'm doing the CEO job. * No control over the company (they can fire me at any time). * Their investment time-wise is not huge.
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