| I've been in a very similar position. Spent 5 years founding a startup that the vast majority of people here probably know. We raised healthy eight figures and failed to pivot to profitability before markets & investor sentiment turned on us. At the end of the road, we faced a critical decision: 1) Do a deep cut in team & revenue to get to profitability. Restart healthy growth with no clear path to exceeding our liquid pref stack 2) Fire sale. We chose to do a fire sale that wiped out common shareholders. In hindsight, a fire sale was the right choice. It allowed me time to recover, and then get back into a new business that has thrived. More importantly, it gave me the necessary space to emotionally recover from a long journey, take a step back to learn from my mistakes, and healthily reset. My advice to you: - Take a deep breath. It might seem like the darkness will last forever, but the sun will rise again. However this fucked up situation turns out, you're going to be OK. Eventually, you're going to laugh at the pain you're experiencing now. - Accept that everything in the past is a sunk cost, and your equity is worth 0. Yes, it sucks that you spent 10 years on a fat zero. But, you need to remain objective, and the facts are clear. The fair value of common shares today is 0, and any value creation is a function of future work, not past work. - Appreciate the opportunity cost of your time. I don't know you personally, but if you're the type who will just start a new business after a long break, I'm willing to bet the expected value of your time is at least $1m/yr. - Try to negotiate compensation with your board that clearly exceeds your opportunity cost. And, be generous in evaluating your opportunity cost - chances are you're underestimating your future self at this time. - If you're unable to negotiate this package, quit. - Get a founder coach if you don't have one yet. Someone who's been in the trenches and can relate with your situation. I can connect you with mine who is amazing, just reply here. Best of luck friend, wish I could spend more time on this response. |