Ask HN: What happens when a funded startup realises it can't succeed?

3 points by anovikov ↗ HN
..And still has a ton of funding left over in the bank?

2 comments

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Ethical companies seem to have either shut down and returned the money (giving employees a few months of severance) or pivoted. Pivoting seems much more common.

Some unethical companies just keep going until the money runs out. It's hard to know who falls into this category from the outside, though.

The board should go to the shareholders with a plan or ask for process to be started to approve of a plan do go forward, which might mean give a pro-rated portion back and go off in one or more new directions with the balance - if any?