Cons:
- I haven't been paid hardly anything for nearly 3 years, relying on side work to make ends meet.
- As the CTO, I handle development, maintenance, customer support, and some sales (we outsource the majority to contractors); the CEO (non-technical) contributes, but not nearly as much as their equity stake suggests (higher than mine).
- Our CEO is trying to secure a 300k loan with questionable collateral requirements, including asking me to put up my car (which a bank owns) and a personal guarantee.
- It took almost 3 years to get a cap table and founders agreement in place, with the CEO dragging their feet.
- The CEO gave out additional equity to our CFO without consulting me.
- Advisory board contains significant portion of family members of the CEO, raising concerns about impartiality.
Pros:
- The 300k loan will be used to partner with a company that has a monthly revenue pipeline, potentially bringing in around 270k a year for salaries.
- Our sales pipeline looks healthy, but the sales cycle is very slow (some deals taking 8+ months).
- Our product has tremendous potential, but success remains uncertain as we haven't closed any significant deals yet.
I'm quite torn. I realize the cons have significant red flags, but I've put so much time and energy into this product getting it to this position. After writing this all down, I realize I should likely move on but I was still hoping to gain some outside perspective.
Thanks in advance.
But Jesus, don't put up your personal belongings as collateral for a failing business. That's just bananas.
But realistically... sounds like it's time to move on.
All the pros can fall though, I'd personally look to move on. Don't put up your personal belongings.