Comment by throwaway230511 | Hacker News Reader

Comment by throwaway230511 | Hacker News Reader

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throwaway230511

This is one of those HN-isms that I think isn't right at all. Having worked at early stage companies, growth-stage companies, and in big tech:

1. What is the risk? From where I'm sitting, layoffs seem to be happening at all company sizes. At least early stage cos typically are pretty transparent internally so you know where the business stands.

2. Compensation is lower than $BigTechCo, no doubt about it, but it's competitive with other companies for folks early in their career.

3. Early stage companies are more fun! Ask your friends, you'll find that the $BigTechCo ones dislike their job but feel the weight of the golden handcuffs, and the $EarlyStageStartup ones love their jobs (but wish they could get $BigTechCo money for it!). Personally after the nth re-org, project cancellation, and executive temper tantrum I was ready to leave $BigTechCo.

4. You don't get founder equity, but the first 10 employees certainly get $LifeChanging outcomes on >B+ exits.

5. I worked the same number of hours at $ShittyBigCompany, $ExcitingEarlyStageStartup, $FamousBigTechCo, and current $GrowhtStageStartup (in fact, maybe a bit less now that I have kids). YMMV!

1. The risk is you've wasted your time being underpaid at a shitty organization run by people who you can't really learn anything from.

2. It's not close to competitive, YC backed companies are cash starved before they raise their first real round.

3. It's more fun if things go well (1/10 chance even after you are YC backed)

4. Odds of this are astronomically low and even lower outside the Fed's ZIRP.

I've worked at multiple size organizations too except for pre seed/seed companies because it seems awful - the Founders are just some random Berkeley kids without product market fit. All the people who I know who are in the same space would never take that deal. What percentage of VCs or Founders do you think take that deal?

Everyone has their own path and experience, so YMMV here.

1. Agree. I'm biased because I've gone from startups -> big techs -> startup. A massive number of friends at big tech have been laid off, but at my startup we're having record years in 2022, and 2023 is shaping up even better. Even if things go south, it'll be pretty obvious.

2. Perhaps early in careers, but not late. Outside of the CTO, I'm the highest compensated employee in tech, and that's still a 60% discount from my FAANG job, even when accounting for current stock prices.

3. I've definitely had way more fun at early stage companies. I've enjoyed the learnings as well.

4. FWIW, I'm 3-3 on startups w/exits (all acquisitions). Net value of my equity was $0, though I did get a 6-figure bonus once as an executive of the company. A $1B exit at my current company would mean some real $$$, such as low 7 figures! Now, to put that in perspective, that bonus was worth less than RSUs from a single year at FAANG (even before stock appreciation). The low seven figures from a startup $1B exit would be about the same as 3-4 years of comp at the FAANG. All of that is to say that I didn't go back to startups for the money.

5. Early in my life at "exciting" startup, I worked wayy wayy wayy more hours than I did at a big company or my current startup. I think hours worked correlates better to my age than to where I'm working. ;)

Agree that the risk is overblown. Apart from the sometimes frantic pace, startups also have more flexibility for different personalities. In a small company things aren't standardized and there's room for uniqueness.

#4 to me is uncertain. I view startup equity as slightly better than a lottery ticket, but unlikely to beat RSUs in a public company unless you get super lucky.

Sure, but that's the "upside" that OP is talking about ("Very little upside for the risk they take"). Upside is a best case thing!

In terms of expected value, completely agree that it does not match BigTechCo total comp.

> Apart from the sometimes frantic pace, startups also have more flexibility for different personalities.

Having worked at a small startup run by toxic founders, this is not guaranteed.

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