Today's thread is on what to do when you think your company needs to shut down.

Read on >>
1) The 1st q to ask yourself is if you really do want to shut down your co?

Sometimes ppl think they need to shut down their co, but really they just need a long break from it.

Shutting down is a big decision that should be made w clarity of thought - not w stress or emotions.
2) I talked about that a bit last night:



People often make such a big decision when the momentum is just getting going, because they are burned out.

Take a long break before making such a decision.
3) In addition, there's a difference between shutting down and YOU not working on the biz right now. Ppl don't often realize the latter is a choice.
4) And often there are alternatives that ppl don't consider.

Such as this story of my friends who thought about shutting down their startup but then did something clever:
5) Last yr during the pandemic, some of our portfolio companies were hit hard. Many founders thought about shutting down. I posed this same q to them.

And some ppl decided to get jobs and wait out the pandemic and come back later.
6) Hindsight is always 20-20 but those who are still operating in this market are glad that they didn't shut down last year.

Sometimes just waiting things out and getting a job / contract gig elsewhere for a few months makes all the difference.
7) But let's say you've looked at all the possibilities and have decided to shut down.

What should you do?

At the heart of it, the best way to win over ppl is to do right by them. Do right by your customers, partners, employees, and investors.
8) Certainly, you / they will be disappointed, but at the end of the day, all of these ppl just want to know if you have *their interests at heart* through this shut-down process.
9) This logically makes sense, but what I often see is very different.

You see teams do things like:
-tell everyone in the 11th hr right before the shut down
-or just completely ghost from telling ppl altogether
10) Instead, just own it.

Shutting down a company is not a bad thing. Everyone who signs up to work with a startup in any capacity knows that shutting down is a very likely outcome.
11) And if you can own it and give ppl a head's up ahead of time, and to the extent possible help all these parties, not only will ppl really support you in the shut down, but they will want to work w you again
12) This can mean helping your employees land well at another company.

It can mean helping to recoup as many $$ as possible for your investors with an asset sale.

It can mean making sure partners have an alternative to you.
13) It won't be perfect. But ppl just want to know that you tried hard for them and were transparent and open with them. And that's about all that you can do.

But often founders are too embarrassed to do this.
14) Lastly, I want to emphasize, YOU are not your co. You will have many at-bats in your career if you choose.

If an idea didn't work out, YOU are not a failure. You can't force the market to work for you.

So if you shut down, get yourself in good shape & get back at it later.

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More from @dunkhippo33

20 Sep
Today's tweet storm is on my learnings on burnout. Burnout is real and can't be ignored. I've faced it a bunch - when I was at Google, during my startup, and even now.

Most founders and busy professionals get burned out at some pt (or multiple pts) in their career.

Read on >>
1) First how do you know if you're feeling burned out?

For me (and many others), one signal is when you wake up in the morning after decent rest and you still feel exhausted. And if this happens for days in a row, it's definitely burnout.
2) When I was younger, my solution was to just plow through it.

You can plow through it but that doesn't mean you should. This turns out to be the wrong move in the long run.
Read 20 tweets
14 Sep
As someone who interned at a startup in HS in the summer of '00 & started building her own startup in '08, frothy times make me very nervous.

Everyone looks like a genius during the best times, but here are some sobering thoughts.

Read on >>
1) This is fascinating - the top quartile of VCs in 2007 had a 2.54x paper multiple. But the actual paid (IN CASH) is only 2.38x -- 14 years later!

Actual cash != paper markups.

2) Another data point. About 6-7 years ago, my friend was telling me about how he had passed on investing in some fund. He had seen that that fund didn't have a great multiple 3 years in.

Today, that fund is a 5x fund, 2x+ realized.
Read 13 tweets
13 Sep
I was talking with a founder today who recently pivoted his company.

The ups and downs of the conversation brought back so many memories of my own startup days.

Today's tweet storm is about the "human aspects" of pivoting a startup.

Read on >>
1) For ppl who have never been through a pivot, it's pretty brutal. A lot of ppl nonchalantly talk about a pivot like it's NBD. But it's a HUGE deal.

Specifically, changing a biz direction is sorta challenging but dealing w PEOPLE is the REALLY hard part!
2) Let's define what a pivot is.

It's when you change your biz direction in some way. It could be a change in target customer. A change in core product / service offering. Or many things at once.
Read 15 tweets
10 Sep
When I was a founder I was completely clueless about fundraising and what investors would ask me. And also why they were asking certain questions.

I don't think founders should ever be blindsided by the process.

A thread -- read on >>
1) @hustlefundvc, we've put together a page on what you can expect from us and our process.

hustlefund.vc/interview-prep
2) I've also put together a doc of questions I think investors will ask you just in general:

docs.google.com/document/d/1qj…

We've highlighted the ones that we tend to ask in blue.
Read 16 tweets
9 Sep
Researching startup investors is still one of the most time-consuming activities founders end up doing just to raise a round.

Here are a few lists of investors I often send entrepreneurs to that can help with this process. (Not in any particular order)

Read on >>
1) Saba Karim's list of investors (@sabakarimm). Check out other resources on his blog as well.

sabakarim.com/investors
2) NFX Signal (@NFX). Their list categorizes the deals that individuals and firms have done previously.

signal.nfx.com/investor-lists
Read 10 tweets
8 Sep
It's been a while since I've done a tweet storm. I was trying to be more heads-down the last 2 months thinking & reflecting.

Some building-in-public thoughts on growing and running @HustleFundVC >>
1) We recently had a company offsite where we had the chance to reflect on how we're doing in all aspects: financially, team morale, and with our mission.
2) Our mission at @HustleFundVC is to further the 3 things needed to grow successful startups: capital, knowledge, and networks.
Read 9 tweets

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