Ask HN: I constantly have to push/nag my cofounder to work. What should I do?
I co-founded a startup with a Surgeon a few years ago.
Me: technical cofounder Surgeon: domain expert and desire to help sell the product
We started this as a side project so we landed on 50/50 equity split. Fast forward 2 months and I decided to go full time since it had some legs.
I struggle to work with him because I pour my heart and soul into the company while he seems like a consultant. I always have to give him tasks and constantly remind (nag) him of them.
Typical flow would go like this:
Him: “I’ll get it done tonight” (radio silence) Me: check-in Him: “(insert random excuse)” (completes task 1-7 days later. Most of the time it is half assed and rushed)
He just seems to prioritize everything over the company. He offered to quit his job and work full time if we raise $1M and pay him $500k/yr and offered me the same salary. I quickly rejected this because that’s not how this world works.
We had a long talk early this year where I laid out all of my issues and concerns. He decided to show his commitment by taking 1 day off of work to help sell the new software and work on product development. He immediately asked for the same salary as me, (60k) and I explained to him 1 day does not equal 5-7 days. We settled on $1k/mo for him.
Week 1: 10 phone calls. Sent 12 emails to hot leads. Week 2: 1 webinar. 6 phone calls. 12 emails. Week 4: he was back at work 5 days a week and never told me.
Definitely doesn’t seem like a great use of 8 hour days. Fast forward to today, still painful, his word means nothing to me, deadlines skipped, etc.
After talking to a few friends, here are some options:
1. Threaten to leave 2. Use our users/investors (surgeons) as the domain experts and ignore him. 3. Shutdown the company and start a competing company
(Currently, he is our “CEO” which is funny considering he is not even part-time)
Thanks HN!
7 comments
[ 4.3 ms ] story [ 23.1 ms ] thread2. Use your users/investors: Probably should be doing this already.
3. Shutdown the company and start a competing company: Hard to see the downside to this approach given what you've told us.
Have you raised money? Do you have registered IP or IP agreements? Are you an LLC, C-Corp, or non-entity? Need to know these things to provide the best advice.
If a shutdown-today, reopen-tomorrow approach is non workable, consider a "soft landing" where you arrange for a "new company" (which you control) to exclusively license your existing entity's IP at a pittance (or a convoluted formula that ends up becoming a pittance). The other guy still owns 50% of something, sees his fortune as existing shareholder is the same as yours, so he's happy and has no reason to fight with you.
If not, float the idea of reducing his equity.
Clearly you and him have very differente expectations.
Options 1, 2 and 3 all have the risk of you being sued by him sooner or later over IP issues. You need to get rid of him and that may cost you.
I have seen this multiple times. This isn’t going to work out. If he like this idea, suggest to him that he be a seed investor and not a cofounder. Explain to him that no one would invest in a startup with a cofounder that isn’t there most of the time. If you haven’t signed any papers, then you don’t owe him anything. Start recording how often he is at the office.
He is a classic case of I will do it if there is money. He is using you as a call option. If it makes money, he goes full time. If not, well, he has nothing to lose. I mean he still has his job. It’s a good bet for him. Not so much for you.
If he won’t leave and your shares are not vested, then you are going to have a hard time getting rid of him. Next time, be smarter.
One thought is he could invest money in to the company instead of working on it to retain his 50% equity. So he could be the CEO, provide direction/advice but instead of hustling sales calls and demos he funds the company ($60k per year) to pay someone to do that.