4 ms·

>Do not join startups for the equity. If you're not a founding member, what reasons does that leave?

by daenz 4y ago

runnerup 4y ago
Great coworkers, fun work environment with high velocity of innovation, decent enough pay, flexible work arrangements, preferred geography, belief in the mission.
- SOLAR_FIELDS 4y ago
  I recently did a round of interviews specifically targeting series A and series B companies and this is a pretty accurate summary. Some interesting things that were offered to me: - Unlimited nomading or work anywhere in the world for the same pay - Extremely generous PTO (by USA standards) - Quite generous WFH equipment stipends
- daenz 4y ago
  You can get all of those things at a non-startup. Having worked at a handful of startups and non-startups, I am skeptical that a startup offers those things at above-average rate the justifies the downsides, which are, from my experience: * High pressure to work at all hours, because a startup is fragile * Extreme financial uncertainty * Many QoL concessions If you're not accepting a generous equity package in exchange for ensuring that the startup thrives and succeeds, you're missing a huge opportunity for exchanging hard labor for potentially high return. It's like buying a lottery ticket without filling in the numbers.
  - runnerup 4y ago
    > You can get all of those things at a non-startup. I mean I've been trying super hard for the past 10 years and I haven't been able to find a workgroup at a large corporation that has a high velocity of execution and is actually innovating much. I'm personally taking a pay cut to go to a startup to hopefully find this. I'd love to join Project Starline or similar truly innovative groups within large companies, but I don't have a degree from a top-10 school so startups are kind of my only way that I can find to get to an environment like that. Even with strong references from Staff Engineers at Google my resume just gets thrown out, haven't been able to secure even a first round interview with FAANG in over 5 years of trying. Maybe they're not interested in working with ex-oil industry engineers, or maybe my resume just really really sucks. > you're missing a huge opportunity for exchanging hard labor for potentially high return. It's like buying a lottery ticket without filling in the numbers. Sure, but my reasons didn't have "make more money" they had "decent-enough pay". Also currently my preferred geography is Houston to stay with my incredible partner. Most of the large companies here have a lot people that I don't enjoy working with -- e.g. people who are outspokenly excited for an illegal immigrant to try to steal tools out of their shed at night so that they can legally kill them. So "great coworkers" is also a bit hard with "preferred geography" sometimes. Granted for a $250,000 role, we'd certainly pack up and move somewhere, but I haven't been able to get FAANG to even give me a first round interview! The bottom line is that it's entirely possible that the best situation for me is to make almost the same money to work with what seems to be an incredible group of really, really, really smart people on some super cool technology. Yes it will be "more work", but with this should come more skill development. I don't have and am not planning on having kids, so I'm happy enough just going to pilates at 7am and working my ass off all day on something that I find personal reward in, and then doing my hobbies (sailing, beer brewing) on the weekends.
    - wbl 4y ago
      If you want to do exciting tech in Houston, there is a really obvious employer. Pay isn't great but the intangibles are out of this world.
      - runnerup 4y ago
        You know, I actually somewhat agree but the pace of innovation/execution at NASA is glacial.
    - quickthrower2 4y ago
      > people who are outspokenly excited for an illegal immigrant to try to steal tools out of their shed at night so that they can legally kill them If they do you can be a witness to their premeditation.
      - runnerup 4y ago
        I mean, obviously. But also it's just their fantasy. The chance of it actually happening is absurdly low. The chance of me having to listen to daily rants about everything and just ignore them or go "uh huh." is 100%.
        quickthrower2 4y ago
        Yeah I meant in jest (they made something legal illegal by saying it is legal). They most likely would do nothing. The actual crime is spreading hate and making it uncomfortable to work.
    - vinceguidry 4y ago
      > my preferred geography is Houston to stay with my incredible partner. The consideration that outweighs all the rest. Personal reasons are, well, personal.
- toomuchtodo 4y ago
  Buy lottery tickets instead (“startup equity equivalent”) and work for established companies who can offer the same. Startup employees optimize for workism (“mission”, trying to obtain meaning from their work), let them, optimize for quality of life and comp instead (many larger orgs have embraced remote and even support global nomads if you structure employment arrangement and finances appropriately).
quickthrower2 4y ago
The usual reasons, compare it on everything else like any other job. They may pay less but let you work without a gazillion meetings and no legacy or technical debt for example. Or you might want to start your own startup so a way to make connections and learn how they work.
- gedy 4y ago
  Man, I don't know... I joined a startup last year thinking that, but then found they were way more into process, Jira, estimation, etc. Plus a bunch of tech debt from the CTO's MVP and "don't touch it".
  - hef19898 4y ago
    The less meetings you have the better run a company is, obviously depending on the type of meetings. Not enough meetings is another indicator of bad organisation. The start-up experience I have is an equal amount of pointless meetings compared with established companies. Only with a significant majority of participants treating it as a meeting with a purpose, something people at established companies know better.
  - quickthrower2 4y ago
    Probably goes something like this: Big company uses process, JIRA, etc. People leave this and do a startup, and like tech stack they are not going to change it because it is a startup. So the process comes along with them. In some ways this makes sense because they know what they know and they think it has worked for them. Software human process systems are self-reinforcing. Be it Scrum (de-facto Scrum, as it is commonly practiced), or whatever, they system is define in such a way that the system can never be questioned, so the system appears to be successful always. If the project is late or full of tech debt, it is the people to blame, not the project management framework. In this sense these systems are almost invincible to scrutiny, only to be defeated if a new management team has a preferred system. Words I have never heard in a retro: "should we even be doing 'agile' at all?"
UkrainianJew 4y ago
To learn by observing the founding members, understanding the business model, the market, and eventually becoming a founding member of the next company. Not something you can do on a full-time job of resolving Git conflicts at FAANG.
- hef19898 4y ago
  That works if the founders know what they are doing, otherwise well, not so much. In my domain, Supply Chain Management, half of the tools Amazon is using daily can serve as carbon copies for start-up ideas. With the added benefit that you know they work at scale.
naniwaduni 4y ago
Not everyone is exactly mid-career?
scarface74 4y ago
Cash compensation.
iancmceachern 4y ago
I noted this in my comment above, pasted here again: Equity is a lotto ticket, not an IOU. Join startups because it's a thing you are so passionate about making, a thing that you think the world needs so badly that you are willing to make personal and professional sacrifices to bring it to reality. Join a startup because you love thr team, really want to work with them and really think that what your building is good for you, your community, the world. The equity piece is just there so folks like us don't feel "Walter Whited" when our passion project makes a big impact, and the world rewards that impact with financial gains.
- daenz 4y ago
  I agree with the lottery ticket analogy, and I also use it in another comment below. However, I think the other points that you (and others) mention can be satisfied at more stable companies. And in fact, those same points are also sometimes used by manipulative people to squeeze undervalued work out of undervalued starry-eyed early employees. Not saying you're doing that, just that they are co-opted by manipulative people. In my opinion and experience, if the equity piece goes away, it is not worth it to work at a startup. It's also very likely that you'll pick up a lot of dysfunctional behaviors, depending on how (im)mature a startups employees are. You're better off getting experience at a more stable company.
  - iancmceachern 4y ago
    100% if a person can satisfy those things in a more stable company that is absolutely what they should do. No doubt, and I'd say it over 100 times. For those that can't find those things at a large established company, I would recommend tp others, and have chosen startupsyself at times in my career.

>Do not join startups for the equity. If you're not a founding member, what reasons does that leave?

by daenz 4y ago

>Do not join startups for the equity. If you're not a founding member, what reasons does that leave?

Great coworkers, fun work environment with high velocity of innovation, decent enough pay, flexible work arrangements, preferred geography, belief in the mission.

SOLAR_FIELDS 4y ago
I recently did a round of interviews specifically targeting series A and series B companies and this is a pretty accurate summary. Some interesting things that were offered to me: - Unlimited nomading or work anywhere in the world for the same pay - Extremely generous PTO (by USA standards) - Quite generous WFH equipment stipends
daenz 4y ago
You can get all of those things at a non-startup. Having worked at a handful of startups and non-startups, I am skeptical that a startup offers those things at above-average rate the justifies the downsides, which are, from my experience: * High pressure to work at all hours, because a startup is fragile * Extreme financial uncertainty * Many QoL concessions If you're not accepting a generous equity package in exchange for ensuring that the startup thrives and succeeds, you're missing a huge opportunity for exchanging hard labor for potentially high return. It's like buying a lottery ticket without filling in the numbers.
- runnerup 4y ago
  > You can get all of those things at a non-startup. I mean I've been trying super hard for the past 10 years and I haven't been able to find a workgroup at a large corporation that has a high velocity of execution and is actually innovating much. I'm personally taking a pay cut to go to a startup to hopefully find this. I'd love to join Project Starline or similar truly innovative groups within large companies, but I don't have a degree from a top-10 school so startups are kind of my only way that I can find to get to an environment like that. Even with strong references from Staff Engineers at Google my resume just gets thrown out, haven't been able to secure even a first round interview with FAANG in over 5 years of trying. Maybe they're not interested in working with ex-oil industry engineers, or maybe my resume just really really sucks. > you're missing a huge opportunity for exchanging hard labor for potentially high return. It's like buying a lottery ticket without filling in the numbers. Sure, but my reasons didn't have "make more money" they had "decent-enough pay". Also currently my preferred geography is Houston to stay with my incredible partner. Most of the large companies here have a lot people that I don't enjoy working with -- e.g. people who are outspokenly excited for an illegal immigrant to try to steal tools out of their shed at night so that they can legally kill them. So "great coworkers" is also a bit hard with "preferred geography" sometimes. Granted for a $250,000 role, we'd certainly pack up and move somewhere, but I haven't been able to get FAANG to even give me a first round interview! The bottom line is that it's entirely possible that the best situation for me is to make almost the same money to work with what seems to be an incredible group of really, really, really smart people on some super cool technology. Yes it will be "more work", but with this should come more skill development. I don't have and am not planning on having kids, so I'm happy enough just going to pilates at 7am and working my ass off all day on something that I find personal reward in, and then doing my hobbies (sailing, beer brewing) on the weekends.
  - wbl 4y ago
    If you want to do exciting tech in Houston, there is a really obvious employer. Pay isn't great but the intangibles are out of this world.
    - runnerup 4y ago
      You know, I actually somewhat agree but the pace of innovation/execution at NASA is glacial.
  - quickthrower2 4y ago
    > people who are outspokenly excited for an illegal immigrant to try to steal tools out of their shed at night so that they can legally kill them If they do you can be a witness to their premeditation.
    - runnerup 4y ago
      I mean, obviously. But also it's just their fantasy. The chance of it actually happening is absurdly low. The chance of me having to listen to daily rants about everything and just ignore them or go "uh huh." is 100%.
      - quickthrower2 4y ago
        Yeah I meant in jest (they made something legal illegal by saying it is legal). They most likely would do nothing. The actual crime is spreading hate and making it uncomfortable to work.
  - vinceguidry 4y ago
    > my preferred geography is Houston to stay with my incredible partner. The consideration that outweighs all the rest. Personal reasons are, well, personal.
toomuchtodo 4y ago
Buy lottery tickets instead (“startup equity equivalent”) and work for established companies who can offer the same. Startup employees optimize for workism (“mission”, trying to obtain meaning from their work), let them, optimize for quality of life and comp instead (many larger orgs have embraced remote and even support global nomads if you structure employment arrangement and finances appropriately).

quickthrower2 4y ago

The usual reasons, compare it on everything else like any other job. They may pay less but let you work without a gazillion meetings and no legacy or technical debt for example. Or you might want to start your own startup so a way to make connections and learn how they work.

gedy 4y ago
Man, I don't know... I joined a startup last year thinking that, but then found they were way more into process, Jira, estimation, etc. Plus a bunch of tech debt from the CTO's MVP and "don't touch it".
- hef19898 4y ago
  The less meetings you have the better run a company is, obviously depending on the type of meetings. Not enough meetings is another indicator of bad organisation. The start-up experience I have is an equal amount of pointless meetings compared with established companies. Only with a significant majority of participants treating it as a meeting with a purpose, something people at established companies know better.
- quickthrower2 4y ago
  Probably goes something like this: Big company uses process, JIRA, etc. People leave this and do a startup, and like tech stack they are not going to change it because it is a startup. So the process comes along with them. In some ways this makes sense because they know what they know and they think it has worked for them. Software human process systems are self-reinforcing. Be it Scrum (de-facto Scrum, as it is commonly practiced), or whatever, they system is define in such a way that the system can never be questioned, so the system appears to be successful always. If the project is late or full of tech debt, it is the people to blame, not the project management framework. In this sense these systems are almost invincible to scrutiny, only to be defeated if a new management team has a preferred system. Words I have never heard in a retro: "should we even be doing 'agile' at all?"

UkrainianJew 4y ago

To learn by observing the founding members, understanding the business model, the market, and eventually becoming a founding member of the next company. Not something you can do on a full-time job of resolving Git conflicts at FAANG.

hef19898 4y ago
That works if the founders know what they are doing, otherwise well, not so much. In my domain, Supply Chain Management, half of the tools Amazon is using daily can serve as carbon copies for start-up ideas. With the added benefit that you know they work at scale.

naniwaduni 4y ago

Not everyone is exactly mid-career?

scarface74 4y ago

Cash compensation.

iancmceachern 4y ago

I noted this in my comment above, pasted here again: Equity is a lotto ticket, not an IOU. Join startups because it's a thing you are so passionate about making, a thing that you think the world needs so badly that you are willing to make personal and professional sacrifices to bring it to reality. Join a startup because you love thr team, really want to work with them and really think that what your building is good for you, your community, the world. The equity piece is just there so folks like us don't feel "Walter Whited" when our passion project makes a big impact, and the world rewards that impact with financial gains.

daenz 4y ago
I agree with the lottery ticket analogy, and I also use it in another comment below. However, I think the other points that you (and others) mention can be satisfied at more stable companies. And in fact, those same points are also sometimes used by manipulative people to squeeze undervalued work out of undervalued starry-eyed early employees. Not saying you're doing that, just that they are co-opted by manipulative people. In my opinion and experience, if the equity piece goes away, it is not worth it to work at a startup. It's also very likely that you'll pick up a lot of dysfunctional behaviors, depending on how (im)mature a startups employees are. You're better off getting experience at a more stable company.
- iancmceachern 4y ago
  100% if a person can satisfy those things in a more stable company that is absolutely what they should do. No doubt, and I'd say it over 100 times. For those that can't find those things at a large established company, I would recommend tp others, and have chosen startupsyself at times in my career.