This. You have to know when to hold 'em and know when to fold 'em. It's not easy with startups to decide which way to go due to the uncertainty inherent in new businesses. I would tend toward hold if the following is true:
1.) The company is meeting a real market need even if it's not doing it very well. The tell: customers 'get' the problem you are trying to solve and want to talk to you. If they stick around but complain a lot about the product that's actually a good sign.
2.) You can afford to lose your job. Getting to a payoff involves some tolerance for risk. Investors take the same risk with their money.