I worked at such a place for 15 years. The downsides for me were lower pay, no equity, and not getting broad industry experience. I ended up leaving, and I now make a lot more money, but I do miss it.
It's not worth the internet points for any of us to post details beyond what we do.
To go into specifics of actual problems solved and do so intelligibly, I'd have to provide specific context, which I'm not comfortable doing here.
It's a lot easier to describe "interesting problems solved" using less identifiable (and more generally interesting) details if one is in platform/infra and/or operating at a Staff+ level -- both of which I have been in the past (and loved it), but am not at the moment.
Funny enough, it happened because of the 2022 layoffs. I figured I'd be fine (and was), but it made me go though the math and realized I was close to escape velocity. On one hand, it made getting excited about uninteresting work that much harder, but because I wasn't quite there with enough buffer, the bad job market still gave me anxiety.
In my case it was easy because I didn’t join the company until after I was already independently wealthy, from an IPO (quitting that company was an easy decision too, due to all the magical changes that happen after IPO).
Yes the expectations are probably still higher, but these companies don’t expect everyone to grow past “mostly self-sufficient engineer” as the parent comment suggests, and for people that do want to do that there’s a full non-management path to director-equivalent IC levels. My impression is that small companies are more likely to treat management as a promotion rather than as a lateral move to a different track (whenever I hear “promoted to manager” I kinda shudder)
It would be nice to have that, though. But my industry isn't known for stability to begin with.
https://www.hanselman.com/blog/dark-matter-developers-the-un...
And that's ignoring the inherent inequality of birthright.