Ask HN: Should I tell my investors about my health issue
I'm a founder of a startup that's just exited P-M fit and we are heading into growth. Revenue looks to be about $5m this year and profitable. This is the great news I have to share.
The past year has been hell, with my co-founder being thrown out of the company for lying to my investors. There was also some mismanagement of money by him, and so the net result was that the past 12 months have been absolute hell.
Often I am coming up with payroll hours before it needs to wire. I have tons of vendors that haven't been paid. I sold my house and my car to keep the company afloat. Many of my investors helped, but many didn't and frankly ignored my phone calls.
I went through due diligence with a firm that in the 11th hour suggested they would only fund our raise with total board control.
Between the legal battle, the cash flow issues, and moving my little family into an apartment in a dangerous part of town - it took a toll on me. I went to the ER on Christmas Eve last year for Coronary Vasospasms, which while not being a heart attack are similar in feeling. They can cause strokes. Those spasms have not really stopped, I have just learned what they are and accept I am under a great deal of stress. I am doing everything I can to exercise, eat well, and talk to people. I think that I am doing everything I can
I am approaching my first quarterly report with them as the sole founder left, and I am contemplating my need to inform them of this. I think on the one hand they should know the amount of stress I am under and that if I should have a stroke or heart attack their investment would likely go to zero.
On the other hand, I am also of the opinion that sharing too much can have unintended consequences.
10 comments
Between needing to provide for your family and keep yourself alive, you need to seriously consider whether a startup is the right place for you.
Whatever wealth you think you'll get from this (which isn't even close to a guarantee, as your investors are likely going to get paid before you), is it worth your kids growing up without a parent?
Apply to some corporate 9-5 jobs with good salaries and see what the decision looks like for you. It sounds like you're in a toxic and dangerous situation. These kinds of dysfunctional startup environments don't lead to big exits.
Based on these limited details, if I were your friend or relative, I would urge you to walk away from this company and take care of your family instead of your investors.
Whatever wealth you think you'll get from this (which isn't even close to a guarantee, as your investors are likely going to get paid before you), is it worth your kids growing up without a parent?
Apply to some corporate 9-5 jobs with good salaries and see what the decision looks like for you. It sounds like you're in a toxic and dangerous situation. These kinds of dysfunctional startup environments don't lead to big exits.
Based on these limited details, if I were your friend or relative, I would urge you to walk away from this company and take care of your family instead of your investors.
You don't specify the "little family" (wife + pets? wife + couple of kids?).
Either way, save yourself. I would suggest "practice yoga" but I don't think it'll help that much.
I remember back in 2007 I went to the emergency room of a hospital, unable to breathe. Stress has cause my stomach to bloat to such a degree that it was squeezing my lungs. The docs saw that I wasn't some junkie faking the pain to get strong prescription drugs. One doc (not more than 30-35yo) took me on the side and told me "whatever is stressing you, quit it now.. work, gf, affair, hobby, whatever THAT thing is.. stop it tonight, otherwise the pills won't save you" (btw I got the prescription but never bought the pills).
I get the exact same vibe from you. If the exit of that tunnel is within arm's reach, keep at it. My friendly suggestion is set a deadline (1 week? 1 month? but not more). If things are 75.0% with a positive outlook --> continue, if they are 74.9% or less --> pull that cord and eject.
Either way, save yourself. I would suggest "practice yoga" but I don't think it'll help that much.
I remember back in 2007 I went to the emergency room of a hospital, unable to breathe. Stress has cause my stomach to bloat to such a degree that it was squeezing my lungs. The docs saw that I wasn't some junkie faking the pain to get strong prescription drugs. One doc (not more than 30-35yo) took me on the side and told me "whatever is stressing you, quit it now.. work, gf, affair, hobby, whatever THAT thing is.. stop it tonight, otherwise the pills won't save you" (btw I got the prescription but never bought the pills).
I get the exact same vibe from you. If the exit of that tunnel is within arm's reach, keep at it. My friendly suggestion is set a deadline (1 week? 1 month? but not more). If things are 75.0% with a positive outlook --> continue, if they are 74.9% or less --> pull that cord and eject.
I think you are missing the most important factor here - if you have a stroke or heart attack, their investment is not the problem -- continuing to live is. It is your life to live, but IMO if your health is tanking due to work, you gotta slow down if not stop. I'd talk to them about having them buy you out. Even if you are the founder, nobody is irreplaceable. Hand it off and get healthy. No work is worth dying over, not even your own company.
Can you just cash out now ?
5m in revenue should mean you could sell for a pretty penny.
I learned this the hard way a few years ago, when you have an opportunity to take a break, do it. Particularly after something's happens. In my case a "friend" ended up setting me up, but I still regret not taking my planned long term vacation.
I'm literally of the mindset right now that I'm done working for 3 months in either August, or earlier if I get fired.
To quote Bob Marley, Money can't buy Life
5m in revenue should mean you could sell for a pretty penny.
I learned this the hard way a few years ago, when you have an opportunity to take a break, do it. Particularly after something's happens. In my case a "friend" ended up setting me up, but I still regret not taking my planned long term vacation.
I'm literally of the mindset right now that I'm done working for 3 months in either August, or earlier if I get fired.
To quote Bob Marley, Money can't buy Life
You should prioritize your health as the number one priority. Stress and worrying too much can cause many serious health issues.
Investors don't owe you as they only risk a small sum of money in each investment and the risk is accepted.
There is a relevant book, "How to Stop Worrying and Start Living", that you can read between the therapy appointment and the next SPA/massage session.
Investors don't owe you as they only risk a small sum of money in each investment and the risk is accepted.
There is a relevant book, "How to Stop Worrying and Start Living", that you can read between the therapy appointment and the next SPA/massage session.
Do you still experience the same amount of stress?
If so, speak to your investors.
I wouldn’t frame it as you’re close to an heart attack. Say the workload you have hurts the company and that you need to hire someone who can deal with all those admin / operational things to run the company, so you can focus more on the product and accelerate growth.
Alternatively if you can cash out then consider that, if you think your health will deteriorate further and cause early death or make you partially paralysed (stroke).
Selling your house and car and moving your family to a more dangerous part of town is quite the gamble.
Take care of yourself and hope the gamble pays off.
If so, speak to your investors.
I wouldn’t frame it as you’re close to an heart attack. Say the workload you have hurts the company and that you need to hire someone who can deal with all those admin / operational things to run the company, so you can focus more on the product and accelerate growth.
Alternatively if you can cash out then consider that, if you think your health will deteriorate further and cause early death or make you partially paralysed (stroke).
Selling your house and car and moving your family to a more dangerous part of town is quite the gamble.
Take care of yourself and hope the gamble pays off.
I genuinely can’t imagine what benefit one could perceive to come out of this situation that’d justify the toll this is taking on you.
Don’t buy into the startup hustle BS. Cash out. Spend time with your family.
Don’t buy into the startup hustle BS. Cash out. Spend time with your family.
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Can you do some things to alleviate the stress? Maybe lay off a third of the staff so your profit goes a lot farther. It seems like you already passed the hardest part. With your growth and some tweaks to costs you could get a much better cushion. Good luck