Huge headache: unexpected interest from an investor in my side project. What to do?
I've been working on a side project for the past couple of years, in a team of two, while working full time. It's mostly a passion project, we aren't making any money out of it, but there's potential. The project is a software and we are a developer and a designer.
Yesterday we got in touch with a guy who's very interested in it and after one call said he'd fund us and help with the business side if we are willing to go all in. We weren't actively looking for this and it was completely sudden and unexpected. Now we have to decide what to do.
Pros:
- he's very experienced on the business side and has a community in the right field
- would probably fund and help raise capital
- would work on this full time
Cons:
- we don't know him (and he's in the US, we are in Europe)
- we'd have to leave our jobs
- we might not be aligned on the vision, because he seems to be way more ambitious than we are
- ?
Do you have similar experiences? Things to consider? Points to raise?
Go for it, there is plenty of jobs for designers and developers later on. You can always find a job. Not every year you find an investor. 🙂
Congratulations on the exciting opportunity for your side project! Making a decision like this can be challenging, but here are a few things to consider and points to raise:
Alignment of Vision: It's important to have open and honest discussions with the potential investor to ensure your visions align. Express your concerns about differing levels of ambition and see if you can find common ground. Clarify your long-term goals and ensure they align with the investor's expectations.
Trust & Compatibility: Since you don't know the investor personally, building trust and assessing compatibility will be essential. Arrange more calls or meetings to get to know each other better. Discuss working styles, your roles and responsibilities, and evaluate if there is synergy between the parties involved.
Geographical Distance: Consider the implications of working with someone in a different country, such as time zone differences and potential communication challenges. Discuss how you will handle these logistical aspects and ensure all parties are comfortable with the arrangement.
Legal & Financial Considerations: Discuss the terms of potential funding, any equity or ownership arrangements, and the legal agreements that would be involved. It may be wise to seek legal counsel to ensure all parties are protected and understand the terms of the partnership.
Future Growth & Scaling: Assess the potential growth opportunities and advantages that the investor brings to the table. Evaluate how their experience and connections can help your project flourish, and discuss strategies for scaling the business.
Maintaining Passion: Consider how going all-in and leaving your current jobs may affect your passion for the project. Discuss how to maintain enthusiasm and manage potential burnout. Assess the potential risks and rewards of dedicating yourselves full-time to the project.
Thanks chatGPT!
Just 2 cents, not an expert but-
this.
If you're still on the fence after considering the above, perhaps suggest a temporary working relationship where both parties get to demonstrate their value, without any commitment. I'd be VERY wary of signing contracts etc. with someone I don't know - esp. of there was pressure to do so.
It's great validation for the thing you're building though :)
The exact same thing happened to me with Mastershot, but in the end I declined. I decided that a project I created for fun would lose all its appeal if I decided to go the funding route.
risk = reward
imma leave this over here.
I think it would be very dependent on what vision you had for your project. Do you want to try for big-time or do you want to keep control and build slow and steady?
Reading lots of the comments people have after they get funding has basically put us off for the time being anyway.
Good luck :)
What do you want to do?
Personally, I don’t know enough about this type of situation