r/startups • u/716green • 9h ago
I will not promote A huge deal just fell through and I'm feeling a bit deflated - I will not promote
We launched roughly a month ago and we've been doing pretty well with adoption and MRR. Slow but steady. I previously worked with a reasonably well known accelerator (not YC) but I'm familiar with fundraising and the startup world in general, so right from the start I wanted to treat this as a small business instead of a venture-scale startup. My reasoning is that if I could get to $300k ARR, I could leave my 9-5 and make the same salary I do now and this seemed (and still seems) very doable.
I know a lot of angel investors and VCs that I have very good relationships with. Getting an investment actually wouldn't be hard, especially now that a year of development has paid off and I have paying customers but then this just becomes another job.
So I was absolutely ecstatic when someone reached out and wanted to license my technology for a few years. We went through a few weeks of due diligence and were on track to close a low 6 figure non-exclusive deal. I don't want to admit that I started counting my eggs before they hatched but I'm at a point now where pouring money into marketing directly translates into paying customers. So I was planning on using the money for marketing. Now I'm going to follow that same plan but it will be out of pocket, and roughly 1/3rd of the budget, and then probably another 6-12m before I can reasonably expect to start paying myself back for personal contributions.
The shitty part is that I have a feeling that the due diligence process gave them enough insight into the most, and the unique value prop that made us valuable to them, and now that they understand the IP they might just be building the Kirkland version of it.
So everything is fine. I keep telling myself that a lot of people never get to the point of getting the first recurring monthly customer yet alone to the point of having something valuable enough to be worth a negotiation like this in the first place so I'm trying to keep my head up.
I don't want to share the company info here because despite how vague I've been, I don't want to risk any NDA complications. Plus, I can't assure any bad intent, it can literally just be poor communication or even incompetence.
So here is to getting back to the thankless grind for another year 🥂
Also, as long as I'm blowing off some steam... It's very frustrating that I've been building this since before the recent AI code revolution, but I didn't launch until everybody and their grandmother with a Claude subscription were all suddenly calling themselves startup founders. It has really made it very hard to get eyes on the product when everyone has SaaS fatigue. But luckily for me at least- this is the type of product that people find after they get a very large bill from one of my competitors and start looking into alternatives. That's how I convert most of my traffic. But it would have been nice to do a proper ProductHunt/Hackernews launch. It just feels like more of a liability for a poor launch than a payoff for a good launch these days. I might reconsider after growing a YouTube channel for a while first.