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Financially speaking, is it even worth joining a startup anymore? Compared to just going to any of the big companies. The latter will likely pay you more, with

Financially speaking, is it even worth joining a startup anymore? Compared to just going to any of the big companies. The latter will likely pay you more, with less risk involved. Seems like the best shot is to strive toward becoming financially independent, and then just go for the startup route and follow your passion. If you it doesn't work out, no big deal - if things turn out great, you'll just be even better off.

absoluteunit1 1y ago
> Seems like the best shot is to strive toward becoming financially independent, and then just go for the startup route and follow your passion. This is what I’m trying to do now. Having worked in startups and big tech; I think the best thing one can do is to attempt to forge their own path. For independence, financial gain and sanity
- BrawnyBadger53 1y ago
  It's generally not a good sign to me that this is the case. But I think you're right. Something needs to change to make startups feel more viable again.
lovich 1y ago
Has it been worth it in a while? This is a legitimate question as I am on the east coast and wonder if it differs from the west coast environment. At least in my anecdotal experience, everytime I’ve entertained a startups offer in the past decade it’s been either something like engineer #1, 3% equity and no you cannot see the cap table or other agreements with investors, or something like 10k units at 25 a share when we’re on series z, and you lose them if you leave, and you can’t sell for 6 months if you leave, and the investors have priority on payment if we sell for less than our valuation and yadda yadda yadda. I mentally just valued the equity as 0 in the compensation with all those limitations on liquidating them and never understood why anyone joined a startup
- xkcd-sucks 1y ago
  Oh also there is the trick where the startup gets sold a little under its strike price and the execs each get signing bonuses > book value of company as sold
marssaxman 1y ago
Was there ever a time when you could reasonably expect to make more money by joining a startup? That has never been the case so far as I am aware, and I'm currently on my seventh tour through startup-land...
- givemeethekeys 1y ago
  It feels like it is worse now than it used to be. Back in 2010, you would be giving up a nice salary but not a much nicer salary by working at a startup. So, startup base compensation hasn't kept up, and the career and financial risk of working for one has gone up due to higher interest rate and higher open-market asset prices.
  - antonymoose 1y ago
    I did a startup circa 2010, early number employee, given our (failed) attempt and my equity I would have conservatively walked away with a $500k sum had the Founders’ plans worked. That would have bought me a fine house in the nicest part of town with cash to spare. Having done two more, the best outcome I’ve seen is a 50k post tax payoff for 5 years of shitty startup conditions. Great, I got a down payment on a house now worth 800k. So that reason the best play, if you’re not a founder doings cash out early, is to just play it safe in a big job and dock money away in equities and real estate.
  - klooney 1y ago
    Base salaries aren't terrible at startups, it's the RSUs and ESPP they can't match. I can deal with a terrible IT department preventing progress for double the money, it's fine.
    - marssaxman 1y ago
      I really cannot, so - good for you! It takes all kinds. There is nothing I could do for pleasure, even with double my salary, which would compensate for the misery I would feel working a job I hated. But that's who I am, and we're not all the same!
pjmlp 1y ago
Outside US hardly, unless being one of the founders, because stuff like being given shares is not common. You will get a regular salary, with occasional performance bonus, just like any regular company, with all the action a startup requires.
rexreed 1y ago
I am of the firm belief the solopreneurship is the future, especially with the power of AI. I don't believe corporations of any type, from startup to tech giant have the interests of anyone but the majority shareholders in mind. Employees, customers, partners, all get the shaft. When money is involved, startups aren't product companies, they're financial instruments.
mikefreeman 1y ago
[dead]
thedevilslawyer 1y ago
> Compared to just going to any of the big companies You're assuming someone joins a startup when they could join a big company. It's an exceptional occurrence.

absoluteunit1 1y ago

> Seems like the best shot is to strive toward becoming financially independent, and then just go for the startup route and follow your passion. This is what I’m trying to do now. Having worked in startups and big tech; I think the best thing one can do is to attempt to forge their own path. For independence, financial gain and sanity

BrawnyBadger53 1y ago
It's generally not a good sign to me that this is the case. But I think you're right. Something needs to change to make startups feel more viable again.

lovich 1y ago

Has it been worth it in a while? This is a legitimate question as I am on the east coast and wonder if it differs from the west coast environment. At least in my anecdotal experience, everytime I’ve entertained a startups offer in the past decade it’s been either something like engineer #1, 3% equity and no you cannot see the cap table or other agreements with investors, or something like 10k units at 25 a share when we’re on series z, and you lose them if you leave, and you can’t sell for 6 months if you leave, and the investors have priority on payment if we sell for less than our valuation and yadda yadda yadda. I mentally just valued the equity as 0 in the compensation with all those limitations on liquidating them and never understood why anyone joined a startup

xkcd-sucks 1y ago
Oh also there is the trick where the startup gets sold a little under its strike price and the execs each get signing bonuses > book value of company as sold

marssaxman 1y ago

Was there ever a time when you could reasonably expect to make more money by joining a startup? That has never been the case so far as I am aware, and I'm currently on my seventh tour through startup-land...

givemeethekeys 1y ago
It feels like it is worse now than it used to be. Back in 2010, you would be giving up a nice salary but not a much nicer salary by working at a startup. So, startup base compensation hasn't kept up, and the career and financial risk of working for one has gone up due to higher interest rate and higher open-market asset prices.
- antonymoose 1y ago
  I did a startup circa 2010, early number employee, given our (failed) attempt and my equity I would have conservatively walked away with a $500k sum had the Founders’ plans worked. That would have bought me a fine house in the nicest part of town with cash to spare. Having done two more, the best outcome I’ve seen is a 50k post tax payoff for 5 years of shitty startup conditions. Great, I got a down payment on a house now worth 800k. So that reason the best play, if you’re not a founder doings cash out early, is to just play it safe in a big job and dock money away in equities and real estate.
- klooney 1y ago
  Base salaries aren't terrible at startups, it's the RSUs and ESPP they can't match. I can deal with a terrible IT department preventing progress for double the money, it's fine.
  - marssaxman 1y ago
    I really cannot, so - good for you! It takes all kinds. There is nothing I could do for pleasure, even with double my salary, which would compensate for the misery I would feel working a job I hated. But that's who I am, and we're not all the same!

pjmlp 1y ago

Outside US hardly, unless being one of the founders, because stuff like being given shares is not common. You will get a regular salary, with occasional performance bonus, just like any regular company, with all the action a startup requires.

rexreed 1y ago

I am of the firm belief the solopreneurship is the future, especially with the power of AI. I don't believe corporations of any type, from startup to tech giant have the interests of anyone but the majority shareholders in mind. Employees, customers, partners, all get the shaft. When money is involved, startups aren't product companies, they're financial instruments.

mikefreeman 1y ago

[dead]

thedevilslawyer 1y ago

> Compared to just going to any of the big companies You're assuming someone joins a startup when they could join a big company. It's an exceptional occurrence.