Ask HN: Launching a startup from within a "parent" company?
I'm currently gainfully employed at a smallish consulting company. I like the company and the owners a great deal, but I've got the startup itch. However, I know my company would be very sorry to loose me.
Rather than branching out on my own, with all the risks associated with that, it strikes me that it might be possible to reach a mutually beneficial compromise: I stay with my company, keep my salary (possibly with a pay cut), spend ~70% of my time on my own project, and we split the profits. It seems good for both parties, provided they believe in me enough to offset the short-term loss of my salary.
Does anyone have experience with this? What would you assume a reasonable ownership/profit distribution ratio would be for this kind of arrangement?
(using a throwaway account in case my boss reads this prematurely).
2 comments
[ 3.4 ms ] story [ 13.3 ms ] threadI'll be the first to admit that I have no life and don't get a lot of sleep.
I think it really depends on what kind of trade offs you're willing to make and risks you're willing to take.
I don't know if a compromise like this would be all that attractive to outside investors either, although my own startup is somewhat independent of all that.
As others have mentioned in other topics, you lose a filtering function. When the company evaluates your idea(s), their opinion will be contaminated with their presumed desire to keep you. They will also evaluate you as a potential startup founder but from what you say there's no reason to believe they're any good at that (and the skills required are different and quite a bit beyond consulting).
You'll have a safety net. Sounds nice, but it can become a dangerous crutch.