Terrifying True Tales of Start-up Terror

The incredible shrinking ownership stake!

June 1, 2023

Mike Rose, CEO

Read about the entrepreneur who saved too much!

To develop my brilliant idea, I got friends and family to stake me. To squeeze every buck, I got engineers and attorneys on board with deferred pay and stock.

I even hired my brother-in-law to do my accounting — a move that haunts me still.

A VC decides to invest. Turns out my in-law kept our books on a cash basis, not accrual — we’re sitting on 500K in unrecorded liabilities! We’ve got unrecorded stock options, too!

The VC invests an extra 500K — and we give away a chunk of equity! Then they say, ”Hire Engine Room. They’ll create accrual-based statements, maintain your cap table, and help with cash planning.“

Turns out their fees are scalable! I could’ve afforded them all along — to help run my start-up better and hang on to more equity.

Don’t be a penny-pinching cheapskate like I was…Hire Engine Room today!