For some people it's just that they like to try new stuff.
I did employment and self-employment with consulting.
Trying a product business is simply an interesting new step.
Working at a startup is overrated, both financially and emotionally
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Re: Working at a startup is overrated, both financially and emotionally
#72This is why I just do crypto. Say what you want about crypto, but the risk reward ratio is easily exceeding lotteries and startup lotteries.
Edit: and I do it while working at one of the tech giants. Paycheck goes to crypto.
Re: Working at a startup is overrated, both financially and emotionally
#73I heard that being an early startup employee is also a great way to fast-track to a leadership/management position, as compared to working at a big corporation. Is there any truth to that?
Re: Working at a startup is overrated, both financially and emotionally
#74Earlier quoted context omitted.
Ironic because Utah is becoming a tech hot spot driven in part by the large Mormon presence.
How so? Recursion doesn’t scream full of Mormons to me.
Just one example. The Mormon mission program is quite possibly the best sales training program in the world. If you can go door to door in a country that isn't your own, in a second language, selling religion then enterprise SaaS is really a breeze. (Note I am not Mormon)
Re: Working at a startup is overrated, both financially and emotionally
#75I generally agree, having worked for a number of startups most of the concerns seem valid; however, there is a unique arrangement that has benefited me:
As a Canadian, I can generally make a higher wage working for an American startup than working for anything local. Usually I can expect 1.5x to 2x over the mean local rate for my skills and experience; and since I don't _need_ health benefits and I enjoy guaranteed parental leave and such, it works out quite well.
I'm happy, and the startup is happy because _I'm still paid less than an equivalent American_.
Re: Working at a startup is overrated, both financially and emotionally
#76I think this is a really good article, but I think that one of the things it misses is that a huge reason the math works out so badly for startup employees is because founders and VCs take the lion's share of the gains. I mean, in my experience at startups, founders typically own around 40% of the equity. The option pool for all other employees is around 10-20%. Now, I certainly believe startup founders deserve far m…
> I mean, what founders risk in terms of opportunity costs and lower wages is usually only slightly more than very early stage employees, but their reward is ~10-30x. A first employee is, by another definition, someone to whom a professional investor would not give money.
You're being downvoted, but as the author of the post you responded to, I don't really disagree. I've been an early employee and have learned I don't have the temperament or skills to be a founder.
My primary argument is just that if founders and VCs don't loosen their purse strings, though, they will find employees are wising up about wealth distribution in a startup and will see they have better options elsewhere, as this article suggests.
Re: Working at a startup is overrated, both financially and emotionally
#77Underpaid and overworked. That is what one gets out of startups. I unfortunately seem to be permanently stuck grinding for startups (10+ years). Don't do it to yourself. It isn't worth it.
Re: Working at a startup is overrated, both financially and emotionally
#78Social enterprise/public tech startups more often than not are very warm places but then the financial/ESOP discussion become something else
Re: Working at a startup is overrated, both financially and emotionally
#79Earlier quoted context omitted.
I guess it’s still a question of borrowing money for a speculative investment, you just get a significant discount that makes profit more likely. Depending on your indebtedness (outstanding student loans, mortgages) savings and current earnings a bank could still refuse to lend you enough money, if at all
If you’re making a high enough salary to be getting enough options that you can’t afford to exercise them, you’re making enough to borrow about $100k. I had no trouble getting an uncollateralized loan at a reasonable rate for $75k; and I had $100k in student debt, a $500k mortgage and little else in the way of assets. And when I say “no trouble” I mean I applied for the loan, was approved 30 minutes later and had the…
If you’ve ever taken any risk with credit and failed or simply had a disruption in income anytime in the last 10 years prior you would have been denied.
Its nice everything worked out for you, that has nothing to do with your ability to perceive a simple solution available to you.
Re: Working at a startup is overrated, both financially and emotionally
#80I wish I got that advise decades ago. I joined several startups in SF throughout my journey. Took me forever to realize that not all levels of hard are the same: - Working harder than most for 1% was not worth it. Small team comradery dissolved as soon as the company started going under. Sometimes founders screwed you over at the end. Nowadays I sometimes wonder why I worked so hard for other people's companies. - Wo…
> sometimes wonder why I worked so hard for other people's companies
I have the same feeling. I'm working at FAANG now but I worked very hard when I was just starting my career for a small manufacturing company to create a e-commerce website. I can't work as hard as those days, I have a back problem and I'm much older now.