

10 TechCruch50 grads: Where are they now? - edw519
http://news.cnet.com/8301-27076_3-10350281-248.html?part=rss&subj=news&tag=2547-1_3-0-5

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matt1
Related question:

What happens when funded startup decides they want to completely change
directions? For example, Flickr was some sort of online game at first, right?
Assuming they had investors, is it as simple as saying to the board of
directors "Hey, we want to drop the idea you funded us for completely shift
directions for these reasons..."?

On the other hand you have funded starts that, for various reasons, decide to
shut down the business all together. For what reasons would you do this vs
change directions like Flickr?

In short, as a founder of a failing funded startup, how do you decide whether
to close the company and start a new one or whether to come up with a new
gameplan for the existing company?

Also, how does having closed down a previous company vs shifting gameplans
affect future investors?

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apgwoz
If I remember the interview from Founders at Work, with Max Levchin (PayPal),
correctly, PayPal's investors trusted them enough to radically change
directions, and it of course payed off. I think this is probably dependent on
who you and your investors are.

~~~
jasonlbaptiste
One of the benefits of top tier angels is their knowledge and experience in
knowing "things often change". If you get angel investors who don't have that
much experience as entrepreneurs in the web space, let alone the angel space,
they're likely to flail their arms around in fear.

