Startups Anonymous Est. 2013 · Read-only archive
Questions

Shut down and re-open to get away from investors?

We went through an accelerator and raised a small convertible note afterwards. Co-founder bailed, company stalled and no progress has been made for 2 years due to burnout of remaining co-founder. Money has run out. No contact with investors.

Now ready to give it another go, but money has run out.

Is it a must to continue under same corporation? Or is it ok to bail/kill the corp and start fresh. It’s a similar business.

I really love the brand name we had and fuzzy on the ethics. I know the investors have written it off, it wasn’t a large amount.

2 answers from the community

AAnonymous· May 16, 2017

Are you using the assets (code, IP, brand, etc) of the original corporation? If so, you may want to approach your investors and offer to "buy them out" for a token amount.

AAnonymous· Jun 12, 2017

The investors might not feel the same if you succeed. Everyone loves a winner. Go to them and get it in writing, or offer them some shares in the new entity to replace their convertible note ... at least they'd be getting something.