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Ask HN: Pros and cons of working at a startup in 2018?

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Re: Ask HN: Pros and cons of working at a startup in 2018?

#21
post #2

Just a few cons.... The big players have drastically pushed up developer comp. The "maybe" money that might come from a best-case startup exit isn't holding up well against the RSUs of the big players. I have friends pushing total comp north of 400K / year at the usual suspect companies. Over a five-year-span-till-liquidity your "maybe" money is competing against a near-guaranteed $2M in comp. Equity grants for early…

> It's also a fine opportunity to learn on somebody else's dime.

If you're getting paid less to work at a startup, it's not on "someone else's dime", though. It might be the most affordable way to (re)train yourself, but opportunity costs are still costs.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#22
Having not worked in the Valley or a startup, I can say the biggest con to me is a lack of stability. You can get a job at BigCo or even MediumSizedButBeenAroundTwoDecadesCo and be reasonably sure you'll still have a job... as long as you want to work there. But with a startup, either they run out of money and you lose your job, they pivot and don't need you and you lose your job, or they get acquired and you very likely lose your job (or it becomes a vastly different job you didn't want). When taken in combination with the insane cost of living in the Bay Area, it seems crazy that someone would even consider this.

Here's a crazy idea from the IT contracting industry: Maybe YC and the like should hire employees and contract them out to startups. I work for a company which contracts me out to another: Even if my position is eliminated with the client, I don't lose my job, I just get reassigned. Perhaps as part of this, YC (or other funding group) gets the investment options an employee would otherwise have had, for example.

- For the startup, they'd be getting employees who weren't worried if they'd have a paycheck in the next six months, and they'd know their VC folks are confident in that employee's ability. For all the other risks startups take, hiring a good developer/designer/business manager would be less of one.

- For the employees, they'd have a stable income they could base real estate and financial decisions on.

- For the fund, they'd have possibly gained more investment, and ideally, having known employees that they've seen the work of before should add confidence to the success of a given business they've funded.

Disclaimer: I have literally no experience or expertise in claiming this would work out financially or otherwise for the startup industry.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#23
Pro (from my personal perspective, YMMV): You get to work on something that will actually see the light of day. For me, there's nothing worse than being this tiny little cog in the machine that comes into work from 9-5 and produces something so microscopic that you question your importance at all. Working at a startup means you have to pull your weight, wear many hats, and get shit done. This also means you can climb the later and get noticed much easier. It also means you can't slack off and fuck around all day. Most of my friends that work at larger public tech companies — it just feels like they're constantly doing unimportant things, going to conferences just for the sake of it, getting into work late and leaving early. etc. That life, that cushiness is just not for me.

Cons: As others have said, the pay is always going to be lower. The stock options are, in most cases, always going to be worth $0.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#24
post #2

Just a few cons.... The big players have drastically pushed up developer comp. The "maybe" money that might come from a best-case startup exit isn't holding up well against the RSUs of the big players. I have friends pushing total comp north of 400K / year at the usual suspect companies. Over a five-year-span-till-liquidity your "maybe" money is competing against a near-guaranteed $2M in comp. Equity grants for early…

I can't echo this enough, I have been going from startup to startup most of my career and I am about burned out and have almost nothing to show for it financially. I am ready to work with a big player from now on. I wish someone would have told me steer clear of startups unless I was a founder.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#25
Open plan offices and general lack of a quiet, contemplative, professional working environment is the hugest con to me, even huger than the compensation issues pointed out by other commentors.

I would look to start-ups to be leading the effort to improve industry practices for software development ergonomy and human-centric working spaces (i.e. focus on privacy, quiet and individual customizability).

But instead, start-ups often try to conflate “collaborative spirit” with some shallow and false idea that collaboration is equal to being continuously embedded in a real-time stream of preemptible audio and chatter.

Headphones, jabberboxes, telephone rooms, limited freedom to be remote — none of these are useful and none address the underlying privacy and human centric ergonomy points.

Practically the only thing left that can convince me to take the risk of a startup, with its lowered compensation, poor insurance, and the poor risk characteristics of equity, is giving me my own private office, and making sure everyone on the team who wants one also has one, from the summer intern on up to executives.

If a start-up cannot offer a private office, then the start-up has to offer me the same market rate salary, bonuses, insurance and work-life balance that any other company would have to offer me.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#26
post #8

Earlier quoted context omitted.

This. I joined a moderately successful startup (good acquisition where founders made > $1 m) and the rewards were not worth the risks as an early employee. Also, the RSUs are low risk, high rewards at the "usual suspects". Unless you love working on a small team with more autonomy, but without comfortable resources and losing sleep over whether your company will be there next week, I just don't see the attraction of…

> I joined a startup and the rewards were not worth the risks as an early employee. Which risks did you take?

Risk of not earning similar to what FAANG offer.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#27
post #9

I echo the comp aspect. I pretty much had a best case non-unicorn startup exit; wonderful benefits pre-acquisition, actual unlimited PTO, and normal ~40hr/workweek, acquired almost immediately after receiving my shares, golden handcuffs after. My total comp was more or less equivalent to my peers doing the big 4 grind over the same time period. They had zero risk and I had to win the start up lotto. But if I had to d…

How long did it take you to receive your shares, if you don't mind me asking?

Less than a year. More shares than non-essential employees, but far far far less shares than founders/executives.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#28
I don't know if I've been unlucky twice, but I think the biggest problem I see with working at a startup is the lack of transparency on runway and the security of whatever form of compensation I am getting. Twice now (in 2 diff companies) I have been stuck in the position of finding out with only a few days' notice that paychecks are not getting wired and we're hunting an investor to bail us out.

Somehow it has become ingrained that a CEO's job is to build everyone up and paint the vision. Well, that's great but somewhere along the way we forgot about the basics of personnel management. Think a co-founder is taking a chance by going without a salary? How about the dude with options and a family.

Sure, people know what they are getting into when they join a startup - or should - but I yearn for YC's next class on "Startup Ethics 101".

Re: Ask HN: Pros and cons of working at a startup in 2018?

#29
Here's what I consider the 'sweet spot':

A small company, say 20-50 people or thereabouts, that has a profitable niche and does not require much in the way of investments. Here's why:

* Small is more fun for me - I like knowing everyone I work with, and the chance to see what other people are working on, and maybe move around some in what I'm doing, rather than 'the same thing day in and day out at BigCo'. Your work also feels more valuable and meaningful. Startups are a lot of fun that way, however...

* Investments and not living off what you sell are inherently unstable and stressful. That's ok to take a chance on when you're younger, but as someone with 20 years of experience in the industry, a family, hobbies, an interest in local politics and so on, it's not so much fun any more.

* I have a bias for cash, not equity. It's fine to roll the dice a bit on that when you're younger, and even now for the right thing... you never know, but ceteris paribus, I'd rather just have the money.

Of course actually finding a place like that is easier said than done. You need to avoid things like winner take all markets.

Re: Ask HN: Pros and cons of working at a startup in 2018?

#30
Employment contracts and more equity may be the answer.

Contracts are already a feature of some companies for some employees. It would be very interesting if all good startups started doing this for all employees. It might make them a lot more competitive with the big players.

It could guarantee that employees walk away with some amount of fully vested stock and cash regardless of why they leave. It could promise a minimum of raises/bonuses/equity on a schedule. It could also formalize things like remote work, equipment, schedule, vacation, insurance, etc.

The idea would be to formalize in legalese the exact nature of the business relationship. Treating the employee with the respect they really deserve, and not like a disposable "at will" cogs. It puts more of the onus for an employee's success on the company. Any good startup should be happy to do this. The bad ones would likely resist it.

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