Ask HN: Is personal bankruptcy a problem for founders?
I'm considering filing for bankruptcy. I plan to start companies in the future. This would of course need to be disclosed to investors in any future startups of mine. Do investors care much about previous bankruptcies? Or at all?
Comments
probably depends on your position.
I'd think twice before investing in a business person who declared bankruptcy. I mean, it would matter why, and it wouldn't be an immediate no any more than having a failed business would be an immediate no, but it's a black mark. The technical partner having that black mark? especially if the technical partner had a business partner who was responsible (and who would presumably be responsible for the money) well, that wouldn't bother me so much.
Thanks. I have played both the CEO role and the CTO role. In the future I would likely be playing the CEO role.
ah. Well, then I guess it would depend on if I thought you went through bankruptcy because you started a company without a corporation and it crashed, or if I thought you went through bankruptcy for personal reasons. The latter, in my mind, would pretty much disqualify you, as it suggests you are not good with money.
The former is just fine, assuming you can get me to believe you. (but convincing me of this would be difficult. Everyone with a shopping problem would like to think they were really 'investing' Financial records from the failed company would help a lot, and would provide evidence you are good with money.)
Of course, I invest in my own companies, not in other people's companies, so my opinion may not be representative.
Oh, also, especially if you are young, it will matter a lot less as you get older. We all can relate to doing irresponsible things when we were young.
The bankruptcy would largely be a result of funding a web startup years ago with credit cards after having used up savings. The expenses were food and rent and the like.
build a company that makes you money and doesn't require investment. what is the problem?
The question is, if I want or need investors, might this be a problem?