How Founders Should Announce Funding Rounds
January 8, 2026
The news of your funding can attract a lot of eyeballs to your product, so it's a big opportunity.
Today, we’re talking about shutting down your startup gracefully.
More and more startups are facing this reality right now, and it’s not ok to simply run your company off a cliff, hoping a term sheet or an acquisition will magically save you. You have responsibilities.
1st and foremost, you need to ensure your employees get paid everything they’re owed. This usually means starting to plan when you have 90 days of cash left. If you don’t, you might be on the hook for the money yourself.
Although vendors aren’t your top priority, you do owe them reasonable communication about your situation and a best effort to pay what you can. Most will be willing to work with you.
If it’s not a great outcome for the investors — you can still ask for their help. They have seen this play out many times and can often help you avoid major pitfalls.
Best of luck out there.
