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How to Choose a Startup to Work for by Thinking Like an Investor

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Re: How to Choose a Startup to Work for by Thinking Like an Investor

#61

Post by joshe »

dragonwriter wrote: post #52
joshe wrote: post #49

Earlier quoted context omitted.

Sorry have to delete these, not comfortable with these comments sitting on the internet forever.

> Nope, the "stock units" that you "vest" will expire after a few years. When they vest, you either get (1) actual shares, (2) the cash equivalent (I think that option may only be available for publicly traded stock), or (3) at your option, retain the RSU for conversion at a later date. Unconverted deferred vested RSUs might expire (and vested stock options definitely expire), but—unlike options—there’s almost never…

Sorry have to delete these, not comfortable with these comments sitting on the internet forever.

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#62

Post by maxxxxx »

ryandrake wrote: post #37
jacquesm wrote: post #15

Earlier quoted context omitted.

That depends on what the company is looking for in you. If you're going to do mission critical stuff or they want you for an important role they might even enjoy showing you their internals. And if they don't want to show you then that's a pretty good indication that you are probably better off elsewhere. Transparency in an early stage start-up is good for everybody, including the founders. If founders are not willin…

No private company I have ever worked for as an employee has agreed to let me look at their balance sheet or income statement. Most would not even discuss valuation in terms other than # of shares in my offer, which is meaningless. One CEO I recall even laughed when I asked at the interview (that should have been a red flag in retrospect). I later learned he gossiped about how inappropriate it was for a candidate to…

Same here. This information is only for investors and other "important" people. Most of us are not part of that group.

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#63

Post by dabockster »

kelp wrote: post #59
kbutler wrote: post #16

By working at twenty of them, expecting 15 to fail, 4 to not completely fail, and one to go big?

This is about my career. 8 startups, earlish employee at 6. 1 mediocre IPO, and 1 very successful IPO. The rest basically failures or zombies that made me no extra money. Probably a little more lucky than most.

Tons more lucky than most. My last startup job misclassified me when funds got tight. A friend of mine who joined later never got paid (good luck filing a wage claim in WA state if L&I’s system still thinks you’re a contractor).

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#65

Post by BadassFractal »

mrnobody_67 wrote: post #56

Best risk-reward is VP or SVP level at Series C or D company which gets you options for 1-2% of the company... switch every 18 months to diversify and build a portfolio but negotiate 10 year exercise window on your options when you leave rather than the standard 90 days. Thousands of execs doing that around Silicon Valley working through Daversa and other executive recruiters (who themselves get $85K-$100K per execut…

That's what I hear too these days. The risk/reward sweet spot in the Valley apparently is either VC (collect management fee for a few years, don't have to show results for a while) or what you said, which is being an executive at a 50+ person company that's shown a very strong trajectory of revenue growth.

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#66

Post by sampo »

The author writes from the point of view of an investor. How likely it is that as a candidate for a job, they would give you all that service and access to all that information? A meeting with all the founders?

Unless you're a valued, seasoned industry veteran, joining a very early stage startup founded by 20-somethings, would you really be able to access all that the author suggests?

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#67

Post by BadassFractal »

Naive question: why not work for a FAANG, try to make close to half a million after enough time, promotions and jumping ship between the different firms, then just invest whatever you're not spending into the stock market or whatever other assets you choose? Take the 400k you're not spending and dump into Tesla and friends, or whatever other sexy stock du jour?

Seems like a much healthier risk profile unless you ONLY want a huge Google-like unicorn outcome as an early employee.

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#68

Post by docker_up »

dawhizkid wrote: post #19
sharkweek wrote: post #5

I worked at three startups before taking the current break I'm on - one I left before my stock was worth anything (would have paid out a small amount in an acquisition), another, the stock is now worth zero, and the third has a shot at being worth about a year's salary if current late-stage valuation is to be representative of a potential buyout/IPO (I'd say odds are alright this will happen). While I try not to thin…

IMO there's only two paths that really makes sense now when considering a private co. Either a) join super early (e.g. penny strike price) with a meaningful % of total company (at least 10 bps) OR b) join late stage growth co that offers RSUs over options (e.g. "Softbank" stage cos). Joining a "middle" stage co where you are offered expensive options is the worst, since you've missed out on the early upside and you t…

This sounds like someone who hasn't actually worked at a startup that made it or has a lot of experience with the issues involved.

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#69

Post by sciencewolf »

BadassFractal wrote: post #67

Naive question: why not work for a FAANG, try to make close to half a million after enough time, promotions and jumping ship between the different firms, then just invest whatever you're not spending into the stock market or whatever other assets you choose? Take the 400k you're not spending and dump into Tesla and friends, or whatever other sexy stock du jour? Seems like a much healthier risk profile unless you ONLY…

It is much easier to get a job at a growing VC-backed startup than a FAANG.

Re: How to Choose a Startup to Work for by Thinking Like an Investor

#70

Post by BadassFractal »

sciencewolf wrote: post #69
BadassFractal wrote: post #67

Naive question: why not work for a FAANG, try to make close to half a million after enough time, promotions and jumping ship between the different firms, then just invest whatever you're not spending into the stock market or whatever other assets you choose? Take the 400k you're not spending and dump into Tesla and friends, or whatever other sexy stock du jour? Seems like a much healthier risk profile unless you ONLY…

It is much easier to get a job at a growing VC-backed startup than a FAANG.

I suppose so. That could be one's foot in the door for a FAANG role later down the line?
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