What Working At Stripe Has Been Like
kalzumeus.com
kalzumeus.com
As a stripe customer for 6 years, I effectively only care about reducing transaction costs. Period.
Stripe's core business is being a part of a "credit card sales tax" that is substantial. Much of this is the fault of Visa/Mastercard/Amex, but that is the problem-space they exist in. Payments are transferring bits, and should be effectively free. If they want to "make the world better", that is basically the only problem that matters in their space, and I never see any recognition of this fact in anything Stripe puts out.
They do a LOT of work to try and make me feel better about the tax (e.g. your money goes towards book publishing!). None of it works, it just seems like the "your tax dollars at work" road signs.
Now maybe people at Stripe are working on ways to reduce the tax on businesses/consumers. It is not a technical problem, its societal. I hope they are, and they will announce something amazing and I can worship at their feet.
Please Stripe, work on reducing the costs to transact online by 1-2 orders of magnitude, where it should be.
Simplii, TD, Scotiabank.
Payments are also about establishing trust, which goes wrong a lot. You can in practice make payments very cheap with some cryptocurrency schemes, but don't get fraud protection, chargebacks, and customer service that credit cards provide (unless you introduce another party in the middle taking a cut).
It seems to me the innovation required to actually reduce costs would replace the credit card system, not build on top of it.
> Payments are transferring bits, and should be effectively free.
Payments is taking on a short term risk that the (slow) transaction between a customer's bank and a vendor's bank will not settle, because of (a) fraud, (b) chargeback-like issues, (c) insolvency. This isn't exactly right, but overally its not quite 0 risk without crypto, which people don't trust (from a UX perspective).
And all kinds of risk-taking charges for it: loans, mortgages, etc. If you want to shoulder the risk yourself and save the fees, pay with a debit card.
Out of sight, out of mind- and I could build it in a weekend.
But aside from that, the risk of payments is not intuitive. We regularly see threads on Hacker News where people pile on PayPal for 'seizing' the money of an entrepreneur with a business model that involves collecting payments up front and then delivering their good or service at a later date.
Unless you've worked in the space, or read the fine print of the agreements, it's easy to get upset about that.
Why do credit cards cost 2-3% to process? Because of expensive rewards programs given to the consumers who use the card. Why are there expensive rewards programs? Because consumers like them! And they insist on paying with a credit card because of them. Except in edge cases, merchants have no choice but to accept credit cards despite the cost.
While Visa, Mastercard & Amex frequently get the blame, the lions share of the processing fee flows to the issuing bank of the card, and the lions share of that fee goes to fund rewards programs. (There are other perks to credit cards that encourage consumer usage, including chargeback protections, free 30 days of float, near universal acceptance, etc)
Payment costs won't materially decrease unless someone invents a form of payment that consumers prefer which doesn't have these cost burdens. Or if you, as the merchant, have such market power that you can mandate a less preferred but cheaper form of payment (like cash or debit card or ACH - this is why you often can't use your credit card to pay a parking ticket or your taxes)
I'd love to have something similar for online payments. Give me a price, then charge transaction fees for credit and lower fees for debit or ACH, etc.
[1] https://www.interac.ca/en/consumers/products/interac-debit/e...
I don't know if the merchant fees for Visa Debit are any different to using a Visa credit card.
When at a physical point of sale, a Visa Debit card is processed over Interac rails, and I believe Interac interchange prevails. At one point back in 2009 Visa was going to set up their own debit network in Canada, but as of 2010, my understanding is they gave up on the plan. The value add from the Visa Debit rails is for international online purchases, for phone purchases and for international point of sale purchases, neither of which are well supported by Interac-only cards.
I'm not saying that this doesn't happen but in nearly 20 years of driving around the UK I've yet to encounter it.
It's extra annoying on a motorbike where you only have a rough idea of what your fuel level is and you absolutely need to fill it to the brim (typically you only get 150-200 miles out of a tank). At least in a car you can wait until you have a quarter of a tank and the put 40€ and know it's going to be some where around 3/4 full.
[0] https://www.cbc.ca/news/canada/british-columbia/b-c-to-imple...
In Europe there is quite often a fee for credit cards, cheap airlines come to mind. Why would a save consumer not decrease risk and get something back for the same price?
* Singapore 3.4% (https://stripe.com/en-sg/pricing)
* US 2.9% (https://stripe.com/pricing)
* Poland 1.4% (https://stripe.com/en-pl/pricing)
(+ some fixed amount in every country)
In some cases it can be even more expensive (see Adyen pricing for Amex or Diners cards: https://www.adyen.com/pricing)
This is a large difference and partially explains why the loyalty programs in Europe are not that attractive
In the sense that someone would readily build a "no reward" chain and get adoption real quick.
I mean there IS reward programs somehow, but it's not like they give you 30% off sometimes like in the US. I always found them outrageous in a way when I was in the US.
That is very US-centric - for example, this all does not hold in Germany (many people are actually still cautious of credit cards there).
> Payment costs won't materially decrease unless someone invents a form of payment that consumers prefer which doesn't have these cost burdens.
In the EU, there is: SEPA direct debit.
I'm not convinced of this. The credit card costs are already baked into prices and so as a consumer I can either play the cc rewards game and get back a decent chunk of those fees or I can use cash and a few % of each purchase I make goes towards subsidizing the folks who do play the rewards game.
This is not a situation that can be resolved by consumer choice, because you'll never get millions of people to all voluntarily agree to give up hundreds of dollars a year in the vague hope of some change down the line.
If we had a single state-run bank (even if it were just as the fulfillment "back end" behind different consumer-facing servicing organizations), then a transfer would occur on a single ledger in a matter of milliseconds, rather than waiting for the East Podunk Bank, Trust, and Pork Cannery to pull a batched update file over a T-1 they put in in the first Bush administration.
Fraud could be handled better than it is now. We have terrible security/convenience compromises (Chip + Signature, anyone?) and when we try to improve matters (3-D Secure) it is presented so badly and clumsily that it basically dies on arrival (it's coming back, but mostly because the EU is cramming it down people's throats)
Chargebacks are a weird case. It feels like they come from two places-- either as the first response to a fraudulent transaction, or as an escalation for when there's no other way to get satisfaction. If you're fair with your refund policy, your chargeback rate should be close to nil.
In most of Europe, people pay with debit cards and the money goes straight off their bank accounts. If there's insufficient funds, there's no purchase. If the network fails, there's no purchase. If your bank goes bust 5ms before your purchase would clear, there's no purchase. I'm no banker and I'm sure there's some risk somewhere, but it's really not very much.
Chargebacks are also still possible. Disputing them is expensive.
How do you buy online then? Prepayment? Good luck with that :-)
But what the comment is advocating for is systemic change/disruption. In that context, the whole complex (bank settlement, chargebacks, insolvency) are a single thing. There are always reasons for things being the way they are, but that doesn't mean that things can't change.
As the OP says, payments move bits around. There is no fundamental reason why this should represent such a big slice.
Besides technical challenges, and whether or not these can be overcome... I think the greater hurdle is entrenched structure and entrenched interests. Stripe is, at this point, a part of that. They have an overwhelming microeconomic interest in payments remaining a large "tax."
Imagine an imports "agent." Her job is to get your goods into country X and navigate the labyrinth of rules, chaos, fees and taxes on your behalf. The whole game costs Y. She earns a % of Y. She may have more, and more nuanced complaints about the labyrinth than anyone but... If Y becomes less, she will earn less.
I would love Stripe to start advocating for lowering credit card fees, either through regulation or providing more avenues for competition.
Of course the reduced savings where not passed on to the end consumer
However the biggest slice of the pie is Visa and MasterCard.
Stripe could release no new features in a year, if they could lower my rate by .1% I would be far happier.
Annoyingly, the cost of implementing the replacement and getting it working with React Native (which involved creating native modules for iOS and Android) ended up costing them as much as several years of fees. Also the client was a startup that went bust, so they never really got the value out of it that they hoped.
There were a few years where Authnet was the "default" gateway. Other gateways offered compatibility modes for their SIM and AIM APIs, and if you had some random off-the-shelf cart, it probably spoke AIM out of the box.
Part of the difference in experience is also likely due to their model. The Authnet model was very much "take direct card data and relay it to your server and then to us", and the Stripe model is very much "JavaScript up your checkout process to do tokenization, so you never see the card number." If you're at a point in time when JavaScript is a bit sketchy (the IE6-is-the-dominant-browser era), you might be more willing to go for a worse PCI compliance scope in exchange for the comparative bulletproofness of doing things server-side.
Now I work for a firm competing with both of them, so I can hardly express a preference today. :)
Running a global online/SaaS business is hard. So much complexity everywhere. I wish Stripe would handle MORE problems & complexity and would happily pay for it.
Just a few examples Stripe could handle:
- Checkout + Portal is a great start, but it still takes too much (expensive) design+dev brainpower to create the entire experience of a high quality trial-to-paid and existing-customer billing management in a SaaS app.
- Running a SaaS company at any scale is full of Support headaches that Stripe Dashboard simply does not handle well - stuff like tweaking a billing date, and doing combination (e.g. wire transfer + credit card) payments, "can you re-send my invoice but with my VAT ID on it this time?" and many more. At any scale, lots of effort is spend on custom billing support tickets and building internal tooling even if you use all of Stripe's features.
- Are you a SaaS company selling all over the US? Good luck being complaint with all 50 states in terms of sales tax reporting without expensive legal/accounting help. Did you hire any remote out-of-state employees? Good luck -- now your financial compliance got even more complicated.
Stripe doesn't do any of these things well today. And if they did, it would likely be much cheaper than the in-house solutions everyone is coming up with instead. I think Stripe should handle 10x as much complexity for a SaaS company than it does today, and of course they should get paid for doing so.
[1] I agree it would be amazing to see Stripe come up with smoother flows for supporting payments that bypassing the expensive card network's fees.
https://stripe.com/docs/orders/tax-integration
but the header says the service is now deprecated. Is there a new one?
I'd be happy to throw them a few more percent if they could handle more of the complexity you've mentioned above. Right now, Stripe is both too complex to set up and too simple from a feature perspective.
I'm optimistic though since it seems companies like Paddle, Chargebee and others are blazing that path. As much as I love Stripe and what they originally did for online commerce, they're already starting to look like the lazy incumbent compared to the challengers right now. Market dominance is not a great incentive to create better products.
EDIT: As in I haven't touch my stripe code for 2 years. They still work.
They are an ISO, payment processor, merchant bank, payfac and gateway all rolled into one.
Add all of those up and you can see why its actually, generally speaking, cheaper.
We charge in USD and we pay for our infrastructure in USD, so the hit we get on the double currency conversion is really unpleasant... as it is completely avoidable.
This has been asked of Stripe for AGES and they did nothing. The only explanation is that this is by design, which means that they have no problem bleeding merchants with unnecessary fees just like all other payment companies. It's just that these fees are disguised differently.
Companies pay sales tax to the state and can deduct sales tax they paid to other companies.
There are rules for applying sales taxes to other EU countries and it get's complicated fast; once you do more than X amount in another EU country, you're supposed to register in that country and file taxes in that country. Thresholds here: https://ec.europa.eu/taxation_customs/sites/taxation/files/r...
I agree with the could and should. Payment costs could be a tiny fraction of current. It is a tax. I'm dubious of the who. Stripe is now a big player. They're have no interest in turning their $X00bn sector into a $Xbn sector.
Incidentally, I think the current economy harbours a lot of sectors that could be orders of magnitude smaller. This has always been a debate in the financial sectors. Today though, there are some (IMO) less ambiguous sectors/companies.
Does facebook actually need $70bn in revenue to operate facebook. Could it be done on $7bn? To me, it seems like an obvious yes. Quite a glaring inefficiency, IMO.
I like the personal notes included a ton, e.g. mentioning that he has struggled with depression personally, which I wouldn't have guessed, even if naively so. Being open and helpful with those topics helps a lot of people out in a serious way. Also love quotes like "I cannot say this enough: pick your peer group wisely because you’re giving them write access to both your conscious thoughts and your entire worldview".
Just reading this post makes it tempting for me to apply at Stripe (They apparently have 530 roles open, wow! https://stripe.com/jobs/search), especially given all the other positive comments I've seen about the company.
Exactly, which is why some of this should be taken with a grain of salt.
By all accounts, Stripe really is a good place to work and their success speaks for itself. Yet, it's important to remember that this article is at least one part advertisement. I'm not suggesting anyone dismiss the contents, but keep the context in mind. The article goes to great lengths to speak about the positives of working at Stripe, but the section about terrible work/life balance is written vaguely enough for the reader to dismiss it as a personal quirk, for example.
However, it's important to keep in mind that patio11's popularity among developer communities is one of the reasons they hired him in the first place. He's paid to be a spokesperson for the company, among other things. He doesn't even try to hide that fact in the article:
> When I was hired, there was a fiction for my business cards but the job rounded to “Do anything required to make Stripe Atlas successful.” ... For about a year I was formally in the Marketing department
I agree with the other commenter regarding the Stripe application process. I've applied 2-3 times starting in 2015 and as recently as early 2020 and have never heard back, it's been the only company that never gets back to me!
Everything worked out, since I've landed some great positions at promising startups in the meantime, but I would have loved to experience the growth from ~500 to ~3000 employees like Patrick has.
Small improvement in this paragraph:
> “If you sell to doctors you prefer futures in which more money goes to doctors. Those are much better futures for you than futures with less money going to...
Since the article was just talking about call options, my first thought went to futures contracts instead of possible timelines. I think using "timelines" instead of futures would make this a bit more readable.
I know I'm less likely to interview somewhere if my friends tell me they got ghosted.
Even in my most recent experience I wrote a cover letter, reached out to multiple Stripe recruiters. Most of them either ignored me, or said that they were not working on that role and said my status is still "pending".
I imagine that Stripe's recruiting team is overwhelmed but it was unfortunate that they weren't able to get back to me. I ended up accepting an engineering manager position over payments at another company.
(1) The practical reality that a lot of people will have a suboptimal experience until we (both "we Stripe" and "we the industry") figure out more scalable ways to assess people. We'll do the best we can to identify promising people but a lot of people will get something somewhat functionally equivalent to a form rejection. You could argue that this is merely a prioritization decision -- we could keep hiring recruiters until everyone could be individually assessed -- but doing so would require a recruiting team of comparable magnitude to the rest of the Stripe organization and so the current state is an unfortunate compromise given the current constraints and given the decision to have an open application form (which is, I think, on net better for everyone).
(2) Cases where people at Stripe mishandled the process. I know for a fact that some of the anecdotes shared in the thread are from many years ago, and I know that our process has improved since then (we have empirical data to this effect), but we're also acutely aware that we continue to make mistakes -- recruiting is a high-stakes and complex process with a lot of fallible moving parts. For whatever it's worth, we issue CSAT surveys to every candidate who interviews (about 6,000 onsite interviews in 2019), and track the results both at the aggregate Stripe level and at the individual recruiter level. And I get why some people here sound so annoyed -- what might be "another entry in a database" to a recruiter or hiring manager is "the future of my career" to someone on the other side. While it's always hard to know what to make of a set of anecdotes, and while our referral rate among Stripe employees is very high today, I'm nonetheless bothered by the number of cases shared here, and we're going to be digging in. (Specific anecdotes with more concrete dates or data are welcome at patrick@stripe.com.)
It is not inevitable and there are company that do recruiting better and other worse. For example, asking for a cover letter at Stripe and then ghosting people liberally even after multiple rounds of interview does not sound tremendously good to my ear. That is a not a sub-optimal interview experience, like being in a coma is not a sub-optimal life experience.
I understand that working with recruiters is hard (who ever said: I know a recruiter who is a genius? Or even the lesser: I know that recruiter, they are brilliant), but respecting candidates should be a priority of any organization.
Absolutely. That is category 2!
Sorry, but it's not. I'm not giving Stripe a pass here per se, but the priority of an org is to make money so that they can offer positions.
Scaling recruiting is hard. Just like you might want an org who see thousands and thousands of applications every day to act more benevolently, the opposite also holds true.
"Scaling recruiting is hard". Sure, plenty of things are hard when scaling, but calling back candidates after multiple rounds of interviews (just to highlight one common complaint) is not. That is a cultural problem.
Generally speaking, the same sort of superlatives used for high IQ aren't used to describe high EQ, but we probably should.
I have interacted with a few recruiters (not at Stripe, I've never applied there) who were off-the-charts in their ability to make people feel comfortable and at ease, occasionally even in the face of truly horrendous processes and systems failures.
Also, it's an interesting signal when you get ghosted by the hiring manager (bosses boss of the team lead I would have been reporting to) and the recruiter re-initiates communication to apologize and get things back on track.
I still never got that job, but that was basically because "Remote OK" really meant "Remote OK in theory because we like the idea of paying a lower salary, but in practice it's only 'OK' for overqualified candidates that we can't convince to relocate, or maybe a relative of ours", and definitely not the recruiter's fault (it turns out that the hiring manager wasn't a good fit for the organization. Go figure.).
I did get some really good chocolate chip cookies as a consolation prize, though.
For example, the most common behavior with these recruiting companies (and I am fully employed and paid very well) is that they take 30 minutes of my time with the usual general questions, then they make me chat with some sort of hiring manager of the target company, then they send an email "I will let you know in a few days", and they never write back. I send an email saying "so?" and I never get an answer. Then, I find out they moved into real estate. Ten, 15 times over a few years (why I continued answering? The hiring companies were quite interesting, one in Vegas, some in the East Coast where I don't have much of a network, they could, with emphasis on the conditional tense, be useful).
We can say that they are just a little piece of a bad process, or that it is the hiring manager/company fault, or "yes, but you did not have to deal with certain rude candidates" (and I have seen plenty of those rude candidates, there I certainly offer my solidarity). And if we go on with the circumnavigation of people, we find a justification for any sort of less-than-good behavior. If telling lies is part and parcel of one's job, they (recruiters/hiring managers/C-level) are still liars, they don't get a pass in my book.
It sounds like you found a decent recruiter and it is quite telling that a recruiter re-initiating a conversation and apologizing, things I happen to do also in my job, is now an "off-the-charts" EQ genius. That's the 101 for anyone with a modicum of professionalism. I am sure there are great recruiters around like there are plenty of needles in haystacks.
Ah, sorry about that, I didn't mean to conflate the two quite so directly. I also didn't make it clear that I was ghosted by the hiring manager after the recruiter handed me off to them. The recruiter wasn't supposed to even be involved from that point forward, but they followed up anyway. However, you can ignore the anecdote as an unnecessary distraction if you like.
Anyway, sure, recruiters get a bad rap, in the same way as used-car salespeople do. I wasn't really arguing that the reputation the profession has is entirely undeserved. I was just saying that good and even great recruiters do actually exist. For many of the working-environment reasons you've mentioned, they often don't stay in the role of recruiting ICs, or even for relatively senior roles. They have better opportunities in recruiting-adjacent fields like executive search services, life-coaching, and so on.
I interviewed in 2019 and never got a CSAT. The recruiter (and rest of the team) completely ghosted me after telling me an offer was coming. No further communication, and certainly no CSAT.
It seems that could be a huge hole and your entire CSAT program is subject to confirmation bias if you are not even sending them to the people who are most likely to respond with a negative experience. I'm not sure I would trust this "empirical data" you have.
They don't have (and you should not expect them) to give a feedback to anyone who apply (as it is the case of the parent comment)
It's not, in fact, what every business owner thinks.
Have you ever seen a businessperson make a public statement on behalf of a company that espoused or accepted negative/neutral sentiment?
I dunno why people even bother responding or reacting internally to these statements. There's not a human being behind them -- there's a corporate entity who has to answer to stakeholders with a spotlight being shined on them.
It's purely politics and statesmanship, the human being is long gone, or only shows up in private settings after everyone's had several drinks.
Except Elon Musk. That's a man you can, probably, take at his word.
This is also why people fight so hard to get prestigious companies and universities on their resume.
Ironically, this is almost the exact same attitude I got in my poor experience interviewing with Stripe. Interviewers were constantly late to our calls and mixed up who would be interviewing me more than once. Despite that, I still was told I was going to receive an offer... only to be ghosted for weeks. Once the recruiter finally reached back out, they said the position had been cancelled but they would find me another position. Spoiler: I never heard back from them, and they ignored all of my further communications.
Throughout all of this, I was apologized to several times (credit is due there, I guess) and each time the excuse was "ha ha sorry things are such a mess, that's just how things are when you work at a start up!" First of all, "haha we're a startup" is not a valid excuse for being late to meetings and ignoring communication.
Second: you're a company worth tens of billions of dollars, have thousands of employees in offices around the globe, and were founded a decade ago. You are not a startup. You are not a "small team". Stop using it as an excuse.
Pretending to act like a startup has become a cover for being sloppy at big companies. People want to pick and choose what it means to work like a startup, and usually they choose the aspects that give them flimsy excuses for bad behavior.
In reality, my experience with actual small startups has been that people are better at arriving to meetings on time and following through with commitments because small teams mean everyone knows each other. If you don't show up to the meeting, we can see you across the small office and hold you accountable.
It's the big companies where accountability starts to disintegrate. People know they can get away with dropping balls all over the place as long as they get their OKRs finished for quarterly review. Things start to slip through the cracks because that person you're dealing with is just another e-mail address, not your close coworker who sits on the other side of the room.
When you do that kind of blog posts, you try to improve the image of the company externally so that more people want to work there. It could help with more people applying but also increase the acceptance rate of the offers.
When you have a lot of people applying then you just cherry pick the best ones
[0] https://paulbuchheit.blogspot.com/2007/06/great-story-from-s...
- You have a referral
- You went to MIT, Stanford, Caltech, CMU, Cal
- You're coming from FAANG or similar
The frontdoor is a waste of time.
Even with the above odds are against you, but at least you have someone to ask about progress/move things along for you.
I live in a place with a fairly small population, and I got offers at 3/3 programming jobs I've applied for since my first in 2017.
I should have said 'most bay area software companies' and even that could probably be qualified by 'competitive' or 'famous'.
Two reasons for that are:
1) I went to a state school (NC State)
2) The FANG in question was Amazon, which I don't think they "count". I have friends that applied when they decided to leave Amazon and they didn't get interviews either.
If your FAANG was Amazon I'm guessing you're in the same boat.
The gist is that I had a friend apply, go through a few interviews, and then just get completely ghosted. After several emails and attempts to reach out, the hiring manager replied to his email with a two word reply when my friend asked about his application status. That reply was "no thanks".
Well designed astroturfing, nonetheless.
Edit: Astroturfing is the wrong word, perhaps. What I mean to say is vocalized better in the replies. These all should be taken with a substantial grain of salt. A rock of salt?
I think it would be much better said that we should take with a grain of salt anyone's assessment of their current job.
And of course, to the point you raise, we must always take that with a grain of salt. Nobody is going to come to the table with complete honesty about the problems at a company with their name right next to it.
Within reason, at least.
It's entirely possible both are true, since they're mostly unrelated, so I don't understand the accusation of astroturfing.
The people handling the recruiting functions are usually not the people you would be working with (unless you go into HR), and generally if HR starts ghosting you during the recruiting process it's because they're putting their efforts into the candidate they are trying to hire.
EDIT: Conversely, the opposite is also true. I used to work for a firm that was an absolute nightmare to work for, but the HR process was amazing.
Afaik he originally became well known for his helpful posts and advice on Joel Spolsky's business of software forums before HN even existed. That's where I first came across him, useful info about SEO.
This is a long way of saying I thought he'd been hired as a developer advocate for their startup thing, Stripe Atlas, rather than a recruitment advisor.
Edit: It's on his blog that he was hired for Stripe Atlas https://www.kalzumeus.com/2016/09/09/im-joining-stripe-to-wo...
I'm well aware of who he is and what he's famous for though.
I've worked in both. When the company with a good environment closes we were all let go. They mishandled my last paycheck so I'm still waiting. No way to get references. Had to contact government to get seperation papers. The bad environment place that stressed you out and then let your department go for something out of your control. The firing process felt good. They provided career support offered a reasonable settlement package. Easy to use as a reference as they provided a contact #
I'm definitely in agreement that a functioning HR/payroll department is a prerequisite for a good experience though. I had an employer that kept paying me after I left company, and they only stopped because I told them that this was the case. Obviously, afterwards, they sent me a letter saying they had "discovered" an overpayment, and I should send them back the money to exact cent, with no allowance for the cheque/mailing costs...
1. You are researching a company.
2. You own or work in hr at a company or have been told to post a review by management.
3. You are angry/unhappy at your current role or that you were let go. You go on to warn others / get even.
Rare is the person who is working a company and is happy who decides to visit glassdoor and tell everyone how happy they are. Have you done this? Know anyone who would follow this chain of events?
I can't understand why a company wouldn't do that, even if they were overwhelmed with the challenge of hiring in general. The win is potentially exponential, if you get good people who come to work with people they already know how to work with.
This was for a pretty senior position.
Why not just tell the candidate that they aren't getting an offer? Why make up elaborate stories about headcount? Why say you're going to follow up? It's clearly not a bandwidth issue since they took the time to respond anyway.
Even something like "We've filled all positions. Your application was strong, but not strong enough. It's unlikely we'll reach back out."
That's 1000x better than getting ghosted after being told they WOULD reach back out. Complete bullshit on their part and a total lack of integrity. There's really no excuse for it.
> A week later, instead of the offer, they just said they ran out of headcount. Never heard back from them again (even though they said they'll reach out when they get headcount back).
Saying you'll get back to a candidate, especially when that candidate has already been told to expect an offer, and then ghosting is not polite. Any framing of this as acceptable behavior, be it polite or impolite, is unacceptable. You can say "oh that's just the way it is" and there's some truth to that, but that doesn't mean it isn't pure fucking bullshit and deserving of condemnation.
I had terrible interview experiences (rudeness, ghosting, and making zero sense) with Lyft, Airbnb, Twitter, but if they make the right offer, I might say yes (although I have quite a strong memory).
They came back to him to tell him his application was rejected. That was obviously the end of it.
I don't understand the anger here.
They lied, full stop, don't apologize for how "polite" it is (and it's not polite, it's disrespectful).
It's like if your doctor tried to be polite to you by not mentioning some serious disease because he was afraid it would make you feel bad. It might indeed make the candidate feel bad to hear about their (perceived) deficiencies - but if they do hear about it then they can do something about it!
Telling the candidate that you'll reach back out, and then not doing that, is complete bullshit.
They said “ we don’t want you in our band “
It was oddly personal and upsetting. Lol
How tone deaf is hr sometimes
Is there literally not a single HR Portal that tracks status? That flags 'pending'? Notifications for '2 weeks no reply'?
The HR person can't grab the hiring manager and hand-hold the response?
An automated response would be just fine.
And just cordial as a minimum you know 'Thanks so much for turning out, but we can't move forward at this time'.
As a hiring manager, absolutely all portals/HR management software I have used up to this moment have this feature. Most of them highlight the application and put them in a visible 'No progress for X time' category; some even send separate e-mails for each long overdue candidate.
The truth is that - at least in the orgs I've been part of - the trend for HR is to be apathetic to the needs of the team they're hiring for and tone deaf in communication. Recruitment has been the least favourite bit of their job.
Over the years I have received Linkedin messages from a number of candidates whom I have referred to other teams/department after they interviewed for a position in mine. HR should've followed up with them; they didn't.
OTOH they were quite efficient with their response. It was a mutual "no" and they spared me the trouble by getting to me, with useful feedback, within 48 hours.
There is a lot of BS around the hiring process these days, but some parts of it are still in HR's control: namely the "before" and "after" of the actual interview day(s).
If that part is bad, it indicates rot in HR, which will be a problem every single time you interact with them.
I have nothing against Stripe, just commenting on the general case.
However I realise it was just a bad person in a big company so I did not let it reflect badly on my use of the product.
This is generally how our industry works, though, which is that it's not worth it to go through loop for a job unless you were referred by someone on the inside.
I was job hunting earlier this year due to my last company (a fintech start up) shutting down and Stripe was the only company that just handed me an immediate "No" without even a recruiter call. I know one other engineer who is more mid level and she said she had applied and never even got a response.
I harbor no ill will toward them, but I'm really curious what their hiring criteria is and why it seems so different that most of the other major companies out there.
Imagine you have enough high-quality candidates such that you could have every single employee interviewing candidates all day every day, doing no other work. What do you do?
In the real world, most engineers top out at one or two phone screens a week, and/or one or two on-site interviews a week. Sometimes more. Each is 45 minutes at least, usually an hour. Each involves writing deliberate, thoughtful feedback and a professional assessment. Candidates that do well lead to decision meetings that take more time for all the interviewers to discuss -- candidates that do poorly can circuit-break.
Then there is scheduling! Is there physical space available for the candidate to interview? Can we get all the necessary interviewers? What if one or more of them can't make it (sick, etc.)? What if the candidate needs to reschedule? Time zones? Holidays?
Imagine Stripe has 100 recruiters (this is at least accurate within an order of magnitude). What does the back-of-the-napkin math look like for their maximum interviewing bandwidth?
Hiring is a really hard problem, even for well-equipped organizations. Even the best in the world do it badly sometimes. And the anecdote cases tend to shout the loudest. Maybe you had a typo on your resume. Maybe other candidates looked better. Maybe there is a nasty rumor about you. Maybe the recruiter was having a bad day. Or maybe you were just unlucky and arbitrarily cut.
This is a great example of how one can do something well-meaning at small scale (Advise tiny, tiny businesses that they would be better served having more confidence in their value) that can turn into something illegal at scale (Advise price leaders that they can safely lead by less and so-on).
A stripe customer is free to tell Stripe "Your fees are too high, and I'd prefer switching processors than raising prices".
I could be wrong. Is there an example of an illegal cartel, trying to persuade customers from whom it makes transaction fees, to raise prices? Surely this isn't a new thing under the sun.
It's the raising of prices in the absence of market forces that gives room for the payment processor to increase fees. Theoretically all payment processors benefit from advocating that their clients raise prices. If some companies raise their prices, no issue, but the coordinated effort to do it is where you "smell a rat".
It's then up to the litigating party to try to find collusion between companies to do this. This is like how the anti-competitive hiring practices of Google/Apple/Facebook/etc were surfaced. They all had a set of practices that stood out as anomalous and during the subsequent investigation it was found that they colluded with each other to set the market (rate for hiring talent).
It's probably not the case here...and also patio11 has little risk saying so while living in Japan where industries are highly vertically-integrated/monopolistic.
The issue is that coordinating pricing is illegal in any form. In any industry, each company could make more money if they knew their competitors would raise prices. Even calling a competitor to tell them that you are raising prices is illegal if they raise prices.
If there's even a single incident of two companies being advised to raise prices on products which compete with each other, it's about as close as it comes to an open and shut price fixing case. And this post makes it easier to prove because it suggests that companies know he's giving the same advice to their competitors. Whether that's said explicitly or not won't matter.
I don't know if what Patrick does is problematic. It wouldn't surprise me if he was trying to be glib and his actual advice is more nuanced.
If one interprets it literally: Someone who receives advice from him to raise prices can look down Stripe's customer list and find its competition and feel confident that the competition will receive the same advice.
Again, I don't know what he does. All I know is that what he says if read by the right person would be sufficient to trigger their curiosity to ask for records of his correspondence and find out.
But the CEO's "progress studies" thing repels me because it reeks of the Kochs' efforts to implant conservatism into education. I don't want to enable that. It sucks.
BTW, I am one of the people who had their YC app reviewed by patio11 and it was a great experience. It's amazing how much time he's able to dedicate to individual Stripe Atlas participants -- thanks!
Wikipedia defines conservatism as "a political and social philosophy promoting traditional social institutions in the context of culture and civilization".
Patrick Collison's article [1] to me seems to be saying "we should be a lot more systematic and scientific in figuring out the drivers of societal progress, and aggressively invest in those things." That seems in direct opposition to conservatism, since it advocates a dramatic overhaul of ineffective institutions.
Collison's definition of progress does seem narrowly focused on measurable economic metrics. Is that the source of your grievance? I think that developments like women's suffrage and racial desegration should be included in discussions of "progress studies", whether or not they led to improvements in measurable metrics. Collison neglects to include examples of this type in his article, but it's not clear to me that he considers them unworthy of study.
[1] https://www.theatlantic.com/science/archive/2019/07/we-need-...
If you had that amount of money (and that reputation), you'd probably try to improve the world _according to your vision of improvement_ too.
> Incidentally, invoking such questions ritualistically is a fairly accurate description of the job of a YC partner. If you start asking questions like "what's preventing you from launching today?" the answer, to the founders' own surprise, quite often turns out to be nothing.
Fundamentally, the job to work in a startup is different from the job to work at a large company. The people that grew a company when it was small might not be the best people to grow a company when it becomes bigger.
I saw this at a previous company where the OGs were convinced they were untouchable because they created the entire technical solution with a handful of engineers. To their credit, it was an amazing accomplishment. Unfortunately, as the company grew, their solution ran into scalability and reliability concerns that couldn't be easily fixed. In every architecture meeting, there was always the disagreements between team "ten years ago, this product would have already been shipped with half the engineers" and team "but that product wouldn't work with the scale we need - it is an exponentially harder problem now"
How can someone be "OG" (Original Gangster, i.e. really old school) in a very well-funded company founded ten years ago?
Am I misunderstanding something?
"My view on Stripe’s business prior to joining was “Stripe is basically a B2B SaaS company with extremely reliable capture of upside when users succeed.” I believe that substantially underappreciates the actual business. Large portions of Stripe’s business add another loop on top of the B2B SaaS loop, where Stripe is effectively indexing on its ability to grow the count and success of customers who are themselves structurally equivalent to B2B SaaS companies."
The "reliable capture of upside when users succeed" seems to be referring to the fees charged by Stripe. More revenue for the user means more revenue for Stripe as well. I don't know what the "effectively indexing" sentence refers to. Is there a network effect at play here, where being on Stripe encourages a user's customers and suppliers to also be on Stripe? Or is there a product offering that somehow creates that effect?
And then there's another loop mentioned later, which is presumably a product in development, and not something anyone involved with can comment on. (But I would love to hear about it if you could.)
Sigma is sold separately but built with everyones data too
I believe what he’s getting at here is close to the following: Stripe isn’t just providing payment (Reliable capture on success, aka Stripe gets money on revenue generation), but is also trying to provide tools to make the B2B model easier to deploy, based on their experience with these business models. Stripe Atlas or Sigma are probably a good example of those types of services - they’re trying to use their payments play to also push for selling you Business Intelligence or Legal.
Indexing is just taking knowledge and deploying it to make something faster, like a database index (I know I want to join on this column, so I index it).
I now see two potential explanations. The first is Atlas, where Stripe enables the ecosystem of B2B SaaS companies to expand rapidly. The other, mentioned in a sibling to your comment, is marketplaces (Connect), where Stripe collects revenue from a number of operating payment networks. In both cases, Stripe is a B2B SaaS which serves other SaaS companies, which allows growth in a way that being a B2B SaaS that serves traditional business doesn't.
I picked up on a few points others here have mentioned already, but the most striking thing for me, particularly from the first half of the piece, is the huge emphasis on growth, recruitment and looking to do new things in the internal culture at Stripe.
Of course, this is reasonable and understandable for a business in Stripe’s position. However, the corollary seems to be a lack of focus on the core service that got many of our businesses using Stripe in the first place. In a nutshell, we use a payment processor like Stripe because we want to easily and reliably collect payments from our customers, so we can get on with what our business actually does.
It would be interesting to know how much is going on at Stripe, presumably involving people other than patio11, in that area. I have a business that was an early adopter back when Stripe launched in the UK, but our perception is that the challenges we face with online payments today aren’t necessarily the areas that recent developments at Stripe are addressing.
I tried to be honest about my frustrations, too, but there's a possibility my salaryman indirectness made them not leap off the page.
This is been my life as well, with the exception of a few years when I was doing over an hour of cardio per day (first on a swim team and later as a hobbyist distance runner).
It's so hard to shut down after just a 24 hour cycle but not doing so always catches up with you.
How has the library process (if any) itself changed over time?
I've worked at non-startup BigCo/healthcare with formalized procedural docs, (technical) writers, change management, etc., and often they were minimal, boring, impersonal, frequently outdated -- and rarely read. I'm imagining (for better or worse) this is something a little more like a shared internal blog archive?
[1] https://www.kalzumeus.com/2019/3/18/two-years-at-stripe/
"Stripe is a celebration of the written word which happens to be incorporated in the state of Delaware. We produce prodigious amounts of it internally, most of it widely visible within the company." - https://www.kalzumeus.com/2019/3/18/two-years-at-stripe/
All of these tools have weird superpowers and limitations that prevent them from becoming a unified catalog. Google Docs can do live concurrent editing between 40 people but can't relax width limits (e.g. for code listings), and ${WIKI_SOFTWARE} can embed every document format in the world but can't require certain pages to be changed via code review.
There's another internal meta-tool that acts like a search engine across the various vendor platforms, so I can search for [network egress policy] and be assured of somewhat reasonable results.
Basically the exact work of Stripe Atlas
"Sometimes this involves scalable writing such as the Stripe Atlas guides. Sometimes I work with a single founder to get their B round accomplished."
Patrick didn't strike me as someone interested in working at a "regular" job.
> A portion of my job is helping folks communicate that we're serious, reliable infrastructure for the largest participants in the global economy while also keenly appreciating that the user might be on a small team trying to sell bingo cards or politically-themed breakfast cereal.
AWS and Cloudflare are two other examples of XaaS companies that benefit from this mode of operation. They're both workable for a one-person team as much as they're for global enterprises.
I don't have any data here, but I'm thinking EHR, ERP, office building rent ("a SaaS company plus some glass and concrete") etc. If the service provided is annually worth 100k USD, theres probably human-human interaction which facilitates the exchange of legal documents and money. Think Oracle, SAP, ADP, ServiceNow, Workday etc.
One of the many ideas that jumped out at me:
> A huge portion of the value creation of Silicon Valley is through directly intervening on the ambition of impressionable people.
This seems especially applicable for software-only or software-heavy businesses that scale very efficiently. Increasing ambition by a little can result in large increase in impact on the other end.
Another idea that caught my attention:
> Silicon Valley was a place. It has become a metonymy for a community of practice. You can find outposts of Silicon Valley in Tokyo cafes, in WeWorks in Bangalore, and on the coast of Cape Town.
If we can inspire ambition all around the world that bodes well for our future.
We've been using Stripe to accept payments for longer than Pat has been there. From the customer perspective, Stripe is largely unchanged from when we first started using it. i.e. easy to use and no complaints (other than the high fees which are probably in line with other processors given our low volume).
We tried to use Atlas to set up an Ireland sub, but had no success. I was not involved, only my COO, so don't have much to add on this.
it seems predatory and abusive to employees to stay private this long
This is immensely frustrating to me, because thinking lucidly about equity is incredibly important for career planning for engineers who are startup-adjacent, work at AppAmaGooBookSoft, or who are in markets where those firms' offers set market terms. I think this sets us up for a continuance of the class system, where people who talked about this subject around the dinner table or have a frat brother who was in Google in 2004 know the score, and people who grew up in Chicago and didn't know what Google was in 2003 do not, even when they're evaluating career options which are heavily dependent on correctly valuing equity.
I did not always think lucidly about equity, and overly trusted the representations of folks on Internet watering holes who said that equity was likely to be nearly worthless. I would like to think I've learned a bit over the years.
I apologize for being indirect here; feel free to ask me about equity in some place where it will not be reasonably read as a comment on a firm I owe various duties to. (Offer broadly open to HNers.)
While estimating probability distributions is probably beyond what one can do without detailed inside knowledge (and even then), it's useful to think of a number of stories, eg: target_co will ipo in 3 years at 2x last raised value, target_co will ipo in 5 year at last raise, target_co will be acquired at 0.1x last raise in 8 years (what is the overhang?); let's say all at equal probabilities. For discount rate you can think of alternative places where you could work (eg. alternative_public_co will grow at -10, +20, +30% yoy with equal probability) + time value of not being able to liquidate (let's say another 10%).
This will give you some range of numbers to consider.
Perhaps there is an argument that by being so focused on the cash part of an offer I probably left equity on the table, if the IPO lottery ticket came in perhaps I would find myself regretting that.
> AppAmaGooBookSoft have individual products with more engineers than our company has people total.
Which products would have more than 3000 engineers?
I’ve heard this, but here there’s an ulterior motive, which may not benefit. Stripe benefits from startups, and if you hangout with successful professionals and mentors and people that don’t bring you down, that will probably make the startup community successful and that in turn will help Stripe grow.
But would you ignore your family member that needs your time and attention? How about your friend that seems to be tanking? If Warren Buffett were to have serious health problems, I seriously doubt Bill Gates would be like “whatever- I don’t have time for that.” He’s going to be there. Because that’s what you do. Sure, there are times when you need your space, and friends change, or tend to abuse. Maybe you need to withdraw some, get off of social media. But, being a fair weather friend or family member just because someone else is not on their A game or never was is B.S.
I’m not discounting the advice; if you’re only goal is to have what is generally perceived to be worldly success, having only peers that boost you is a way to do it. But the greatest person that ever lived had a bad friend that got him killed. He wasn’t like, “sorry, I have dinner plans.”
Is this a reference to a well known figure? I'm trying to think about who this might be and I'm drawing a blank. Who was the greatest person that ever lived?
All I read is: If you talk a lot with finance oriented people, don't be surprised if you start thinking in finance oriented ways.
To give a different example from me personally: For a while I read red pill material, because I thought I could take lessons from it, while dismissing all the women hating parts as I had no reason to be angry with women. Guess what: if you read about a lot of anger towards women, you become angry towards women yourself as well!
So the lesson I took from that was: pick your peer group wisely because you’re giving them write access to both your conscious thoughts and your entire worldview.