Live data from Hacker News

How to Not Get Screwed over as a Software Engineer [video]

ycombinator.com

121–130 of 257 posts

Re: How to Not Get Screwed over as a Software Engineer [video]

#121

One of the top comments on the YouTube video attached to the article talks about how someone wasted their 20s working as the founding engineer (employee #6 of a 6-person startup) and when the company exited for $100 MM, they only got 100k and are still working at 40 years of age while the other 5, presumably having cofounder-level equity, are retired. This is the true risk of startups, and, if you're looking to maxim…

These folks just put up a long post trying to weigh the risk v reward at various startup stages.

Mostly summarized into: "Joining at Series C may give you an ideal combination of risk and reward. Series C startups had the highest weighted growth in our analysis, followed by Series B and A."

https://www.joinprospect.com/blog/which-stage-startup

Re: How to Not Get Screwed over as a Software Engineer [video]

#122
post #94

Earlier quoted context omitted.

Not really, it's better to just start your own startup instead, there is not much need to spend years as a founding engineer before becoming a founder, you might learn some skills but it's nothing you can't learn yourself, as evidenced by the people who are first time founders who did not previously work at a startup. If you get to some scale and get acquired (or even shut down), you can leverage that for future high…

It just depends on if you have the background and talent to warrant that role. I think that is an exceptional case for someone to get funding and support to build a venture without any operating experience.

If operating == running an existing similar company, then almost no successful founders I’m aware of had such experience before hand, did they?

Re: How to Not Get Screwed over as a Software Engineer [video]

#123

It's funny that YC is posting this video, because as far as I can tell, YC teaches its founders to keep most of the equity for themselves, and dole out as little equity as possible to their employees. Back during the dotcom days, most employees, from secretaries to engineers, got extremely rich from options when the company IPOed. These days, in order to make a life-changing amount of money at a YC startup as an empl…

As a YC founder, YC doesn't teach founders anything when it comes to how to split equity. The economics you're describing is a function of (overly) high valuations in private markets, which leads to equity grants that don't appreciate very much when liquidity happens. This is great for folks that got in early (founders and early investors) and bad for everyone else.

Re: How to Not Get Screwed over as a Software Engineer [video]

#124

It's funny that YC is posting this video, because as far as I can tell, YC teaches its founders to keep most of the equity for themselves, and dole out as little equity as possible to their employees. Back during the dotcom days, most employees, from secretaries to engineers, got extremely rich from options when the company IPOed. These days, in order to make a life-changing amount of money at a YC startup as an empl…

Based on equity packages and outcomes I’ve seen, this video is a total sales video from YC to ICs as an attempt to rouse the hiring pipelines for YC companies in the face of this year’s layoffs.

I myself had an offer from a YC company years ago that had some layoffs but essentially outperformed and raised a big Series D/E/F this year. Had I gone with the YC company, my equity even in their big raise would have been about $100k. And no guarantee I could have realized any or all of that gain in the raise.

YC could be up-front and give this actual data in the video. Instead it’s primarily a specious talk show segment about how YC wants you the IC to think they’re on your side.

Re: How to Not Get Screwed over as a Software Engineer [video]

#125
1. Acknowledge you are not an expert at everything. Talk with your own Lawyers who read the contracts, Accountants that know local tax events, and former employees before agreeing to anything. “Strategic Truth” often means no one may lie to you knowingly, but this can still cost you during acquisition. Example: IP sold to another stealth company the founder owns for $10, so what is that 7% share/option worth again. That's right... you got nothing… saw several people get conned this way.

2. Avoid accumulating legal encumbrances at large firms... overly broad NDAs, contracts, and Patent/Copyright obligations can get nasty. You may be signing things long after you leave a firm for zero pay, get fired to claw away equity 2 months before IPO after a 10 year career, or incur dozens of term revisions over years slowly bleeding off contract value. In general, many countries also interpret the identical contract differently depending where it was signed. Example: In Canada anything you build while working at a firm can be claimed by said firm unless explicitly excluded in your contract, and in the USA it is generally implicit that any IP unrelated to company operations is your own. Most employees will roll over like a dead wale, as they likely don’t have enough capital to fight a legal battle. One may think they know better as they ignore #1, but they are provably wrong.

3. Avoid predatory VCs if possible. Ask yourself what these people actually bring to your firm, if they think you are gullible enough to table personal assets, or if a one time top up was worth 34% of your firm. If it is just working capital from a douche in a cheap suite... than seriously reconsider your growth plan. Example: You are small and thirsty… and never saw what share dilution does to founders. Again, talk with your own legal/finance people before agreeing to anything.

4. Make sure someone doesn’t swap paper stacks on you before signing, or give you a old unedited “wish-list” version as a copy. Professional cons span all professions, know card tricks, and people still do ethically dubious things when relatively small sums are involved.

5. Everything is always pleasant in the beginning, but if the legal paperwork is sloppy... things can get very ugly later. Part of being honest and candid up front... is putting into writing what peoples expected obligations are to each other and the firm. Example: Large rapid revenue growth has torn friends and families apart... as even a $100m can drive some people to recreate a history that never actually happened.

6. Most techs at Startups have 6 jobs, and being smug ain't one of them. Some advice for business ops.. stay in your lane, as you are also not as mission critical as people may have suggested.

7. YMMV, ask several random people… each bring differing perspectives. Everyone I respect initially disagrees with my opinions a first... can take a few years to reach consensus for the truly smart.

Have a wonderful day, and build something awesome =)

Re: How to Not Get Screwed over as a Software Engineer [video]

#126

One of the top comments on the YouTube video attached to the article talks about how someone wasted their 20s working as the founding engineer (employee #6 of a 6-person startup) and when the company exited for $100 MM, they only got 100k and are still working at 40 years of age while the other 5, presumably having cofounder-level equity, are retired. This is the true risk of startups, and, if you're looking to maxim…

[deleted]

Re: How to Not Get Screwed over as a Software Engineer [video]

#127

Earlier quoted context omitted.

The CEO is the sales guy. If you have worked in B2B places before, very often the CEO is completely non-technical.

Can't the CEO be the product guy?

Product CEO only works for companies where the product sells itself, which in my experience is only a small fraction of companies

Re: How to Not Get Screwed over as a Software Engineer [video]

#128
post #65

Earlier quoted context omitted.

And then, hilariously, he said, "I just happened to have won that particular lottery."

Why is it hilarious?

And then his accountant/advisor said something like, "If you'd told me you were going to buy a nightclub, there are easier ways to lose all your money."

Re: How to Not Get Screwed over as a Software Engineer [video]

#129
post #76

The intro of that video hit hard and hurt. I have literally been in that position where I built the analytics page, which marketing asked for, and I can see the analytics for the analytics and no one has even checked the page. And so I chime in asking if anyone else has noticed that our big product release is not going anywhere and its like crickets. You realize that from your position that you have no ability to hol…

"you have no ability to hold others accountable" -- true for all levels of the human stack

Re: How to Not Get Screwed over as a Software Engineer [video]

#130

Earlier quoted context omitted.

Sadly this is mostly true. It used be at $bigtech you needed to be the equivalent of a senior engineer (L5+) to go into management. This is categorically not the case anymore. TPMs, due to their role, work across orgs and interface more with leadership so they do seem to get a lot more visibility/exposure than normal ICs and do seem to get promoted into leadership positions more easily. My wife is less technical and…

I think alot of engineers are under the impression that if they work hard enough they will be promoted. But actually, the company gains the most from highly productive mid level engineers. These are the workhorses, they do not want to promote them.

Organizations are generally pyramids, where you have fewer people on top than on the bottom. You can't promote everyone, so you have to decide on criteria - and hard work in software engineering isn't always high-leverage work. In my experience the best engineers can figure out the right work to get done, saving hours of hard work that never even needed to happen.
Post reply on HN