Rajaram - who sits on the boards of Pinterest and Coinbase - had added on Twitter that an early shut-down can be a “graceful way out” for stressed-out founders, so we asked him whether it’s also practical, considering the current market. Wanting to explore the issue further, we reached out today to renowned operator and investor Gokul Rajaram, who last night observed in a tweet that “any founders who raised large amounts of money ($10m+) in 2020-21 but subsequently realized they don’t have, are going through an excruciating psychological journey right now.” Some very strong companies have been born of pivots, including, famously Slack, whose team initially sought to make a game called “Tiny Speck.” Not last, if investors gave founders too much money in recent years - and more than $10 million for a company without product-market fit sounds like too much money - that’s really their own fault. It’s a lousy job market, and most founders feel an obligation to take care of their employees. Among them: Fundraising is tight, so raising money for another startup is not a no-brainer. Still, we’re not sure many founders would give up on their companies right now for a long list of reasons. Working on something that isn’t working can be soul crushing. ![]() Importantly, the founders’ time could also be focused on more productive endeavors, greatly improving their mental and emotional well-being. After all, the money could be invested in something more impactful. Their argument is that some startups simply raised too much, at valuations into which they will never grow, and that clean, well-planned exits are better for everyone than messy ones. ![]() ![]() Investors rally around idea that struggling founders should close shop and return some fundingĪ growing number of investors have begun suggesting that certain venture-backed startups that have yet to find so-called product-market fit throw in the towel.
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