I'm getting involved in a venture with my business partner where we're starting to make decision as to where we'll base the startup, and it's looking like I may have to move to another city for the best interest of the company, however I'm in a personal relationship with a life partner which may not be able to move with me. Discussions with my business partner are leading towards: "We'll have to seek funding from VC's who are willing to increase your salary to accommodate for your back and forth travel needs."
Is this possible? Or is my business partner dreaming of such outcome to become reality for the situation? If such accommodations can be made by investors, by how much are they willing to increase salaries?
You didn't provide much information about your startup. This I think is critical to properly answer this question. Be analytical however. Put yourself in the investors position and determine with each investor if they would entertain that idea, as you put it. If not, don't risk losing their investment altogether and just avoid asking for personal investment. After all this is your troubles not his/hers, if the investor joins chances are is because they like you and your business potential. Once you have them your commuting can be accepted as far as the burden it might put on your business growth and attention. But as far as financing, I would say that if you find one, you're luck is better than those who win the lottery.
As an investor myself, and entrepreneur, I find to difficult to justify how commuting or relocating a startup is good for business. If you absolutely have to though, your goal is to focus on pitching that value... The relocation. Once that value is sold to the investor the obvious "I'll have to move and thus need basic living expenses covered" becomes an easy natural sell to an investor who likes your original idea and understands the value need for relocating.
Work around the personal needs with driving home the value of relocating the startup and paying full attention to it once is moved. :)
Have a great journey, keep us posted!
Email me at email@example.com to let me know it goes, is always exiting and great learning exp. to see what works with investors and pitches look like.
There can't be more amateur thing than to think that an investor is out there to fund you for meeting your personal and material needs. You aren't the first one to fall in that cauldron of Catch 22 situation wherein the personal emotions is taking over the professional maturity. That's where one needs to have a EQ to be able to maintain the balance.
You can afford to live apart from your life partner for a while to build a better future for both of you. You can't afford to compromise with your future to live with your life partner in present. I don't know which part of world you belong to, but I see such problems day in and day out in the part of world I live.
Let me know if there's something that might require discussion between us. All the best!!
I have evaluated quite a few entrepreneurs in this bind. I'm a huge proponent of having a strong support system around especially in entrepreneurship. For that reason, I'd be open to the idea. Besides, there are so many factors that affects your burn rate that it doesn't make sense to get stuck on this one. Just explain it to the VC with an honest and straightforward manner and don't hide anything.
On the flipside though, you will have to make a decision and convince your partner. This is the same thing as convincing someone to join your company. You'd have to be tactful in doing this and as a VC I'll be watching how you do it.
Give me a call if I can help further.