Practical Founders Podcast #134: When It’s Time to Close: Helping Founders Shut Down Right – Dori Yona
Mar 7, 2025
Dori Yona, co-founder and CEO of SimpleClosure, specializes in helping founders gracefully shut down startups. He discusses the emotional and logistical challenges of winding down a business, particularly for those with venture capital. Dori emphasizes the need for swift action, advising founders to prioritize time and learn quickly from failures. He also explores the complexities of financial planning during closures, the role of automation in legal processes, and the global perspective on entrepreneurial churn. A must-listen for anyone facing the tough realities of startup life.
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Startup Shutdown Is Common Yet Taboo
- Shutting down a startup is a common and generally taboo topic nobody talks about despite its prevalence.
- About 93% of venture-backed startups fail, highlighting the importance of understanding shutdown processes.
Three Shutdown Scenarios
- Many shutdowns follow one of three paths: asset sale, out of cash, or proactive closure despite remaining capital.
- Asset sales leave the company entity intact, requiring formal shutdown procedures.
Founder’s Own Shutdown Struggle
- Dori encountered major obstacles when trying to shut down his own startup, with no helpful resources from lawyers or accountants.
- This frustrating experience motivated him to create Simple Closure to ease the shutdown process for others.