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First, most of the money raised by early-stage software startups goes to salary anyway, so that's not as restrictive as it sounds. Second, you didn't have to d
by cwp 7y ago
First, most of the money raised by early-stage software startups goes to salary anyway, so that's not as restrictive as it sounds.
Second, you didn't have to do any recruiting. This is huge. Recruiting soaks up the time of existing employees who could be working on the product. It takes money for ads, sourcing, sponsorships etc. It takes calendar weeks or months before you actually get somebody to start, which is a big opportunity cost to a start up. And it's hard. If you have first-time founders, not knowing how to recruit effectively is probably one of the biggest risks the company faces.
- nordsieck 7y ago> First, most of the money raised by early-stage software startups goes to salary anyway, so that's not as restrictive as it sounds. > Second, you didn't have to do any recruiting. This is huge. Recruiting soaks up the time of existing employees who could be working on the product. It takes money for ads, sourcing, sponsorships etc. It takes calendar weeks or months before you actually get somebody to start, which is a big opportunity cost to a start up. And it's hard. If you have first-time founders, not knowing how to recruit effectively is probably one of the biggest risks the company faces. That does actually sound really good, at least in the beginning. I think it could lead to some awkwardness if the start up sees success and needs to expand (which company are the VC funded employees loyal to?), but those are good problems to have.