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Ask HN: Someone has stolen my startup - what can I do?
11 points by ghosttown 5359 days ago
Hello,

I asked an acquaintance to be a co-founder for my startup that was in alpha. After 6 months it was plain to see that he was having a negative influence and the product was going nowhere (in fact backwards). At this point I asked him to leave the startup after we failed to see eye-to-eye on a major issue.

Fast forward 12 months and I have found out that he has copied my idea and made his own version of the startup (which was all my original idea).

Is there anything I can do? I only just saw his site and I feel sick to the stomach.

Cheers

11 comments

I'll be honest, I do not have any experience with this, but I have to say that 12 months sounds like a long time, especially 6 months of development with him there. Do you have anything up and running to claim or prove that you were first? On the largest stage, we've seen the precedent for something like this, with Facebook. I would imagine that odds are not in your favor, unfortunately. Unless you had a non-compete.
Just do what you do and be better. If you didn't see eye to eye, you'll probably end up with 2 different products.

It could be worse. I applied to a well an incubator/investor type program and made it to the final screen...only to find out several months later, the program founders launched a very similar idea with a very similar customer acquisition strategy, involving the same company we were in talks to partner with. I'm not explicitly saying the idea was stolen from us, but common courtesy would be to not pick our brain and let us know about the conflict up front. Needless to say, we weren't selected.

Needless to say, our strategy back then was a loser. Today, our products have more similarities than differences, but we've diverged enough b/c we've both had to pivot and were drawn in different directions.

Just rock what you have out of the park. Most ideas aren't right out of the gate.

Neat, you got some validation! What about customer validation? Is investors or people are talking about your competing company? Note down the sources so you can talk to them, especially if they are your ideal market. It means you can find out what they'll pay for and/or market to!

Next step is to go through your logged or memorised history with the cofounder. How do they treat people? What's their style? etc. Look for their strengths and weaknesses.

Now, if you believe that you have a better direction after all this, then you'll know competition much better than most people. eg Microsoft doesn't understand due to the paranoid nature of Google's NDAs for example.

Sorry, but your idea is one direction and pretty useless on its own. There's many ways to evolve your idea though. Investors especially love executors.

His doing a startup doesn't prevent you from doing it. An idea is just an idea - it's not a real product and it's not even a patent. There's a lot more to a startup than just an idea, and takes a lot of work.

If you're passionate enough about your idea, you'll find ways to win. Besides, no startup can succeed without competition, so in some ways, he's actually helping you to create or grow this market. Also, he cannot support all of his customers by himself so there will be other customers out there where you could serve.

Does it matter if someone copies your idea even if you have worked with him in the past ?

Look in the broader landscape there are so many ideas who are the same at their core. But only the user makes the decision who will be successful and who is not, try to deliver the best experience.

I got over this "we have to find some unique idea to start a business and we wont if someone is already in it".

Whip it off and go out and build a better product/service than your ex-co-founder their is enough room in every market.

Alas they have more resources than myself, so will most likely end up with a better experience than me. But you are right.
I've seen this happen to many early-stage startups. Not exactly with a cofounder copying the idea, but along the lines of the idea being copied. My advice is the following:

Your biggest problem is still finding product/market fit. It's very possible that you both are still building a product will eventually fail. Or at least in it's current form.

Focus on getting your traction/revenue. Once you're raking in the cash, you can determine whether its worthwhile to go after your old co-founder.

You are right. The bitterness must be left behind, focus on moving forward.
All else being equal, your problem isn't that someone stole your startup, it is that you don't have a cofounder. Find one and keep moving. Him copying you or not has no consequence.
good point :)
I have been there before, but instead of focusing on what to do about him, just focus on getting out your product finished to your standards. Make sure it is what you want it to be and then place it as the competitor. You also have the benefit of watching where his product fails so you can make yours all the stronger. In the end, its your vision and only you can truely make it what it is suppose to be, and if it is good then you will do well and he will fall.
"Ideas are all alike. The devils are in details." - Ted Cui

The sick feeling will pass. What you have is time. Time is an amazing thing. Forgiveness is a weapon.

Facebook >> Myspace / Friendster etc.

Something to remember when ever I start thinking about him.. Thanks for your comments
I've experienced this personally circa 2005-06. So I kinda know how difficult it is for you. Its now 2011, all I can say is I'm very glad for 05-06 event.

if you get time, watch this movie :

http://www.imdb.com/title/tt1054588/

Do you have an NDA or non-compete agreement? If not, live and learn.
Best to get over it. This will not be the first time or the only time it has happened to an entrepreneur.