Stepping from the lion's head

Life happens.

Unfortunately we make plans, things don't always work out.

You should discuss this with your partners, as the one with the new baby will have some time soon to be able to help out more. The one with the medical problems, that depends on the medical issues, and should be discussed.

Everything is a race, but, if being first out isn't always a guarantee you will capture a large part of the market, but you do need to get something out the door.

You may need to decide to pare down your initial plans to decide to launch earlier, and as you get revenue work like crazy to add new features.

If you do decide to replace partners you will want to make certain they feel compensated, otherwise you will have lost lifelong friends.

give options/equity to people that have contributed so far.

consider applying for ycombinator.com - it solves the problem you have [needing some cash to rock full time]

you'd be very lucky to get angel funding pre-launch. raising money is hard, and its so risky pre-launch: your product might still suck. whats the minimum viable product you can do? do that, prove it works, prove people want it, then maybe you could raise an angel round.

1. With your partners, tell them "in or out?" if out, agree to pay them set amount of money IF company is successful, nothing if it not in exchange for their IP rights.

2. Unless you've been around the startup track at least once, it's a tough sell to get outside funding without something working - at least a prototype. Investors don't pay for ideas, they pay for reasonably likely chances of getting a least a 10x return. You have to show them something.

3. Bootstrapping is hard - it took me 2 years instead of 1 on my new startup. The key thing is find a way that lets you make real progress each and every week, make sure there's a market for the product you have in mind (as 3 prospective customers - take them to lunch each). You have to be the most stubborn SOB you know to make it, but you can make it.

Don't believe that founding-friends vs business-success is a zero-sum game. There is no reason why even if your friends decide not to actively continue with the startup they should not still benefit to some degree when the business is ultimately successful. Though as Bob Walsh suggests (point 1.) their ultimate reward must reflect the relative contributions, particularly the greater contribution that you will now be making moving forward.

Be and honest and fair in everything you do, especially with your friends/co-founders - they will appreciate it. Sure, make any deal legally clear and documented, but your integrity will always be your most valuable asset - I doubt any of us on our deathbed will regret doing the right thing by our friends vs the alternative.

You're just going to have to sit down with them and have a good, clear talk about where everyone is heading.

Good luck!

Get your partners out. Give them some small % and get rid of dead weight. You need to regroup. New partners, or whatever it takes. Who will invest in your company if you have two inactive partners each holding a large percentage of your company?

Always risky starting a business with friends. You did it. I suggest you take this head on. Initiate a discussion about the topic with your friends/partners. Suggest that its only fair that you know when/if they will be upto full speed on your shared project. If not, find an amicable way to split. They will understand that you have a business to run, and since they're not interested any more, its only fair to split.