Discussion
So i started a new role on the 1st of July, prior to starting i had 3 interviews with the CEO, CTO, Executive chair, and head of investments from the PE firm backing the start up company i was joining. it is now the 31st of July which was suppose to be pay day and no payment. I get a call from the CEO saying the PE firm has now pulled all funding and has left the company in a position of insolvency and they are working on giving me a % of my salary for the month whilst they figure things out.
right now i feel incredibly hard done by. Having left a position i was in for 8 years and due to the interviews with key people no indication was made of any issues, i even asked about long term plans etc. Just can't believe it would go so wrong so quickly. i have also never been in this position before so trying to get my head around where it leaves me.
More of a rant than anything else.
right now i feel incredibly hard done by. Having left a position i was in for 8 years and due to the interviews with key people no indication was made of any issues, i even asked about long term plans etc. Just can't believe it would go so wrong so quickly. i have also never been in this position before so trying to get my head around where it leaves me.
More of a rant than anything else.
WY86 said:
So i started a new role on the 1st of July, prior to starting i had 3 interviews with the CEO, CTO, Executive chair, and head of investments from the PE firm backing the start up company i was joining. it is now the 31st of July which was suppose to be pay day and no payment. I get a call from the CEO saying the PE firm has now pulled all funding and has left the company in a position of insolvency and they are working on giving me a % of my salary for the month whilst they figure things out.
right now i feel incredibly hard done by. Having left a position i was in for 8 years and due to the interviews with key people no indication was made of any issues, i even asked about long term plans etc. Just can't believe it would go so wrong so quickly. i have also never been in this position before so trying to get my head around where it leaves me.
More of a rant than anything else.
Something similar happened to me quite some time ago. right now i feel incredibly hard done by. Having left a position i was in for 8 years and due to the interviews with key people no indication was made of any issues, i even asked about long term plans etc. Just can't believe it would go so wrong so quickly. i have also never been in this position before so trying to get my head around where it leaves me.
More of a rant than anything else.
Subsequently I treat the interview process as an opportunity for me to do my due diligence.
Sorry that isn’t massively helpful in your situation.
Truckosaurus said:
Also, isn't that the risk of joining a start-up? More chance of it going wrong, but more chance of advancement as the company grows.
That is of course true, but all unravelling within a month is not normal. Also would the writing not be on the wall before offering job roles out?While it might be teetering on the brink, its going to be very tricky to get folks to join if you're absolutely honest, and advise them that it might not be great idea to actually resign until next month. Even more so if your persuasion to the PE includes "look, we have a highly experienced CTO etc joining this month".
Completely sucks for you though - bridges all intact at your old place?
Completely sucks for you though - bridges all intact at your old place?
There is inherent risk with any start up but I can understand why you're aggrieved.
The directors have statutory and fiduciary duties and should have had an awareness that the insolvency risk was real. As such their decision making should have shifted from acting in the interests of shareholders to prioritising creditors interests. You could engage an employment lawyer to protect your interests but should weigh up likelihood of achieving a positive financial outcome given the company isn't solvent.
Rubbish situation and, having been through similar, I feel for you.
The directors have statutory and fiduciary duties and should have had an awareness that the insolvency risk was real. As such their decision making should have shifted from acting in the interests of shareholders to prioritising creditors interests. You could engage an employment lawyer to protect your interests but should weigh up likelihood of achieving a positive financial outcome given the company isn't solvent.
Rubbish situation and, having been through similar, I feel for you.
The attitude of the CEO will be a good indicator of what happens next. Don't forget that he will also be left in the lurch and likely looking at considerable personal financial loss.
If he's been contrite, apologetic and fully open, then don't bolt too soon. If a new investor can be found and the business flourishes, loyalty and understanding will likely not go unrecognised.
If he's been abrupt and unapologetic.... then you know the rest.
If he's been contrite, apologetic and fully open, then don't bolt too soon. If a new investor can be found and the business flourishes, loyalty and understanding will likely not go unrecognised.
If he's been abrupt and unapologetic.... then you know the rest.
Sounds like a poorly managed investment process to be going into a hiring cycle that depends on the funding, before the funding is contractually agreed.
Poor form on all parts aside from yourself. Obviously you could have asked if the funding was secured prior to handing in your notice but that feels like a minor lesson vs what happened to you.
You have my sympathies.. thinking glass half full.. at least you didn't join the company then found out the funding wasn't there. I presume the success of your role would have been dependent on the investments made from the money that came in.
Poor form on all parts aside from yourself. Obviously you could have asked if the funding was secured prior to handing in your notice but that feels like a minor lesson vs what happened to you.
You have my sympathies.. thinking glass half full.. at least you didn't join the company then found out the funding wasn't there. I presume the success of your role would have been dependent on the investments made from the money that came in.
InformationSuperHighway said:
Sounds like a poorly managed investment process to be going into a hiring cycle that depends on the funding, before the funding is contractually agreed.
Poor form on all parts aside from yourself. Obviously you could have asked if the funding was secured prior to handing in your notice but that feels like a minor lesson vs what happened to you.
You have my sympathies.. thinking glass half full.. at least you didn't join the company then found out the funding wasn't there. I presume the success of your role would have been dependent on the investments made from the money that came in.
I questioned it twice once with exec chair and once with person from the VC both said it was all costed for and had sign off to proceed with the hire.Poor form on all parts aside from yourself. Obviously you could have asked if the funding was secured prior to handing in your notice but that feels like a minor lesson vs what happened to you.
You have my sympathies.. thinking glass half full.. at least you didn't join the company then found out the funding wasn't there. I presume the success of your role would have been dependent on the investments made from the money that came in.
Sometimes it works out sometimes it doesn’t i guess. its the gamble you take with start ups.
Small sliver of light as talks with another investor are on going so we will see.
Tbh that’s really bad form.
As said, play it cool and see if magic can happen but
Cv out to recruiters / speak old firm
Reduce opinion of quality of leadership team.
I can see <6 month issues in a startup but within 1 with no pre warning to you is, IMO borderline unforgivable. I’d be looking for a new opportunity as I’d have lost faith in leadership
As said, play it cool and see if magic can happen but
Cv out to recruiters / speak old firm
Reduce opinion of quality of leadership team.
I can see <6 month issues in a startup but within 1 with no pre warning to you is, IMO borderline unforgivable. I’d be looking for a new opportunity as I’d have lost faith in leadership
stuthe
said:
said: Tbh that’s really bad form.
As said, play it cool and see if magic can happen but
Cv out to recruiters / speak old firm
Reduce opinion of quality of leadership team.
I can see <6 month issues in a startup but within 1 with no pre warning to you is, IMO borderline unforgivable. I’d be looking for a new opportunity as I’d have lost faith in leadership
Would not go back to the old firm, as one of the reasons i left was due to an American CEO, with very American ideas and pressure. As said, play it cool and see if magic can happen but
Cv out to recruiters / speak old firm
Reduce opinion of quality of leadership team.
I can see <6 month issues in a startup but within 1 with no pre warning to you is, IMO borderline unforgivable. I’d be looking for a new opportunity as I’d have lost faith in leadership
Yeah keeping my options open but August is always a slow month.
WY86 said:
InformationSuperHighway said:
Sounds like a poorly managed investment process to be going into a hiring cycle that depends on the funding, before the funding is contractually agreed.
Poor form on all parts aside from yourself. Obviously you could have asked if the funding was secured prior to handing in your notice but that feels like a minor lesson vs what happened to you.
You have my sympathies.. thinking glass half full.. at least you didn't join the company then found out the funding wasn't there. I presume the success of your role would have been dependent on the investments made from the money that came in.
I questioned it twice once with exec chair and once with person from the VC both said it was all costed for and had sign off to proceed with the hire.Poor form on all parts aside from yourself. Obviously you could have asked if the funding was secured prior to handing in your notice but that feels like a minor lesson vs what happened to you.
You have my sympathies.. thinking glass half full.. at least you didn't join the company then found out the funding wasn't there. I presume the success of your role would have been dependent on the investments made from the money that came in.
Sometimes it works out sometimes it doesn’t i guess. its the gamble you take with start ups.
Small sliver of light as talks with another investor are on going so we will see.
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