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> He’d be taking a 40 percent pay cut to join them, but he would have his hard problem and would get to run his own data-science team. Nick and Chris had allott

> He’d be taking a 40 percent pay cut to join them, but he would have his hard problem and would get to run his own data-science team. Nick and Chris had allotted an equity pool that was larger than average, and they were making Tevye a generous offer—in a highly theoretical sense. San Francisco was full of people walking around with their pockets stuffed with 1.2 percent of nothing...Tevye signed up. He asked to begin on January 27, roughly two weeks before Nick and Chris’ money was set to run out. This is precisely why "What's your runway?" is such an important question to ask before you accept a job offer from a startup.

vinceguidry 13y ago
> This is precisely why "What's your runway?" is such an important question to ask before you accept a job offer from a startup. Let's say you did ask the question and got an as-honest-as-you-can-expect answer. (two months, but we're soon to close a million-dollar round) How does that really help you make your decision? You could look at them and try to judge whether they might make their round, but you're probably better off in Vegas. If I've read the article right, runway doesn't mean what it used to mean anymore. You can keep raising small amounts of money for a good while before investors will give up on you, and even if the company ends up folding, you're still working and getting experience and making connections.
- 001sky 13y ago
  If I've read the article right, runway doesn't mean what it used to mean anymore. Have you done the math on how small 2 weeks of funding really is? That should be your follow up question. $50K in the bank? with a $100K line of credit? or $8K in the bank and a vw golf as a backstop? The two examples are worlds apart.
- 7Figures2Commas 13y ago
  > Let's say you did ask the question and got an as-honest-as-you-can-expect answer. (two months, but we're soon to close a million-dollar round) How does that really help you make your decision? You could look at them and try to judge whether they might make their round, but you're probably better off in Vegas. How doesn't this help you make a decision? Given the number of opportunities out there today, including opportunities outside of Startupville, there's no reason an experienced or talented candidate has to gamble on a startup that might not be able to make payroll if a funding round doesn't close in the next n weeks or months. By the way: there's no such thing as an "as-honest-as-you-can-expect" answer. There's an honest answer and there's a dishonest answer. A founder, executive or hiring manager at a startup should be able to look you in the eye and tell you how much runway the company has based on its current cash position, cash flow and burn rate. Anything less, including an answer that distorts what "runway" means (hint: funding that you expect to raise but haven't yet raised doesn't count), is a huge red flag that you ignore at your own peril.
  - vinceguidry 13y ago
    > Given the number of opportunities out there today, including opportunities outside of Startupville, there's no reason an experienced or talented candidate has to gamble on a startup that might not be able to make payroll if a funding round doesn't close in the next n weeks or months. You're absolutely right. There's no compelling reason to work in Startupsville. If you're there, then you're already being fairly irrational. Knowing the (current) runway isn't going to make it any less so. > A founder, executive or hiring manager at a startup should be able to look you in the eye and tell you how much runway the company has based on its current cash position, cash flow and burn rate. Is this actually true, or a pie-in-the-sky wishful thinking thing? The article seems to paint the latter picture. I've been in situations where overconfidence and unrealistic optimism were the norm rather than the exception. Like auto sales. You'll fall out pretty quick if you can't get with the program and insist on being a wet blanket. You have to get good at reading between the lines because nobody talks straight. Opportunities are there, but mostly only for the morally loose.
    - 7Figures2Commas 13y ago
      > You're absolutely right. There's no compelling reason to work in Startupsville. If you're there, then you're already being fairly irrational. Knowing the (current) runway isn't going to make it any less so. I think you took my comment too far. Working at a startup isn't for everyone, and there are plenty of great opportunities outside of the startup world, but not every startup is a sinking ship that's hiring new employees when it only has two weeks of cash left. > Is this actually true, or a pie-in-the-sky wishful thinking thing? The article seems to paint the latter picture. I've been in situations where overconfidence and unrealistic optimism were the norm rather than the exception. Like auto sales. You decide what's important to you. If understanding the financial state of a company that's going to employ you is important, you have every right to ask questions. This is especially reasonable at a startup, where most employees are granted stock options. If a company offers you an ownership stake, why shouldn't it treat you like an owner? You should turn your auto sales analogy around because you're looking at it the wrong way. If a used car salesman is trying to sell you a car and won't let you take a look under the hood, what are you going to do? Buy the car, or move on? The latter of course. So why would you join a startup if the "salesman" evades questions about what's under the hood of the business? Just because there are a lot of people who are too naive or timid to ask questions doesn't mean that you should follow their lead. The latest boom has attracted a fair number of shysters to the Bay Area, but there are still plenty of honest people here who will level with you without hesitation. These are the people you want to work for and/or with.

vinceguidry 13y ago

> This is precisely why "What's your runway?" is such an important question to ask before you accept a job offer from a startup. Let's say you did ask the question and got an as-honest-as-you-can-expect answer. (two months, but we're soon to close a million-dollar round) How does that really help you make your decision? You could look at them and try to judge whether they might make their round, but you're probably better off in Vegas. If I've read the article right, runway doesn't mean what it used to mean anymore. You can keep raising small amounts of money for a good while before investors will give up on you, and even if the company ends up folding, you're still working and getting experience and making connections.

001sky 13y ago
If I've read the article right, runway doesn't mean what it used to mean anymore. Have you done the math on how small 2 weeks of funding really is? That should be your follow up question. $50K in the bank? with a $100K line of credit? or $8K in the bank and a vw golf as a backstop? The two examples are worlds apart.
7Figures2Commas 13y ago
> Let's say you did ask the question and got an as-honest-as-you-can-expect answer. (two months, but we're soon to close a million-dollar round) How does that really help you make your decision? You could look at them and try to judge whether they might make their round, but you're probably better off in Vegas. How doesn't this help you make a decision? Given the number of opportunities out there today, including opportunities outside of Startupville, there's no reason an experienced or talented candidate has to gamble on a startup that might not be able to make payroll if a funding round doesn't close in the next n weeks or months. By the way: there's no such thing as an "as-honest-as-you-can-expect" answer. There's an honest answer and there's a dishonest answer. A founder, executive or hiring manager at a startup should be able to look you in the eye and tell you how much runway the company has based on its current cash position, cash flow and burn rate. Anything less, including an answer that distorts what "runway" means (hint: funding that you expect to raise but haven't yet raised doesn't count), is a huge red flag that you ignore at your own peril.
- vinceguidry 13y ago
  > Given the number of opportunities out there today, including opportunities outside of Startupville, there's no reason an experienced or talented candidate has to gamble on a startup that might not be able to make payroll if a funding round doesn't close in the next n weeks or months. You're absolutely right. There's no compelling reason to work in Startupsville. If you're there, then you're already being fairly irrational. Knowing the (current) runway isn't going to make it any less so. > A founder, executive or hiring manager at a startup should be able to look you in the eye and tell you how much runway the company has based on its current cash position, cash flow and burn rate. Is this actually true, or a pie-in-the-sky wishful thinking thing? The article seems to paint the latter picture. I've been in situations where overconfidence and unrealistic optimism were the norm rather than the exception. Like auto sales. You'll fall out pretty quick if you can't get with the program and insist on being a wet blanket. You have to get good at reading between the lines because nobody talks straight. Opportunities are there, but mostly only for the morally loose.
  - 7Figures2Commas 13y ago
    > You're absolutely right. There's no compelling reason to work in Startupsville. If you're there, then you're already being fairly irrational. Knowing the (current) runway isn't going to make it any less so. I think you took my comment too far. Working at a startup isn't for everyone, and there are plenty of great opportunities outside of the startup world, but not every startup is a sinking ship that's hiring new employees when it only has two weeks of cash left. > Is this actually true, or a pie-in-the-sky wishful thinking thing? The article seems to paint the latter picture. I've been in situations where overconfidence and unrealistic optimism were the norm rather than the exception. Like auto sales. You decide what's important to you. If understanding the financial state of a company that's going to employ you is important, you have every right to ask questions. This is especially reasonable at a startup, where most employees are granted stock options. If a company offers you an ownership stake, why shouldn't it treat you like an owner? You should turn your auto sales analogy around because you're looking at it the wrong way. If a used car salesman is trying to sell you a car and won't let you take a look under the hood, what are you going to do? Buy the car, or move on? The latter of course. So why would you join a startup if the "salesman" evades questions about what's under the hood of the business? Just because there are a lot of people who are too naive or timid to ask questions doesn't mean that you should follow their lead. The latest boom has attracted a fair number of shysters to the Bay Area, but there are still plenty of honest people here who will level with you without hesitation. These are the people you want to work for and/or with.