I spoke with a founder who was facing a critical decision on whether to self-fund their business, having not paid themselves a salary for some time.

They weren't sure their own funds would be enough, didn't think existing investors would support them, and had another option to start a new venture in a related space.

They were worried that if they took the latter option, their investors would be upset or angry.

I recommended they speak candidly with their existing investors and explain that the current situation was unsustainable. They need to earn money to support their family and it's unreasonable to expect them to fund the business on their own.

Then, with this context in mind, they can talk through the potential scenarios like a recap and pivot, or closing the existing business and starting a new one.

The key is to manage expectations while being honest and transparent about the options.

Investors should respect that, see that they have worked hard and contributed above and beyond what they might reasonably have expected, and hopefully recognise that any proposed outcome is the only reasonable way forward.

Best of luck.

#founders #startups #venturecapital #buildinginpublic #investinginpublic