It really depends on how time consuming your day job (is it 9-5) or tons of deadlines, overtime, emergencies, etc. And also on your personal ethics regarding how much you "owe" your day job.
Few examples:
• Ram and I continued working our very demanding jobs while working on Nile on nights, weekends and a bit of PTO. This was enough for us to have a few customer conversations, agree on features that make sense for MVP, have some ideas around architecture. We achieved conviction in our direction. Real work started after we left. Based on my startup friends, this seems to be the norm.
• Another colleague was in a better spot. He was an engineer on a project that was not super demanding for his skills. So he could work 9-5, and had a lot of time and energy to actually built his side project. He left the company with a better-than-MVP product (he also took care to do all the paper work to actually own that product and not risk lawsuits).
• Yet another colleague also built the MVP while working for the company, but he pretty much stopped working for the company. Folks noticed that he doesn't actually deliver his work, is not very responsive, etc. Also doable, but burned a bridge or two.