Download - How to choose a startup to work for
VC for a daypicking a startup to work for
Startup founderRecruiting softwareFast-growing co’s in 87 countries
Startup Employee7 years from startup to $100m company
@moraitakis
Startup jobs are investments
The job
- Seed stage startup (<$1m raised)
- 0.5% equity with 3-year vesting
- $20k below market salary
Startup jobs are investments
Should you invest?
- $60k for 0.25% at exit(assume 3 rounds of 25% dilution)
- $150m exit for a 6x return in 5-8yrs(to match the risk profile)
- ..and that would be a good scenario!
Think like a VCExpect high levels of transparency
Evaluate the business fundamentals
Do your own research
Accept uncertainty, embrace risk
Don’t throw dice, make a calculated bet
Product
Is the product solving a real problem?
Is it good / better than the alternatives?
What’s the competition?
What do people use now?
Market
Who wants this product and how badly?
How much are they willing to pay?
How easy it is to reach them?
What’s the addressable market size?
Business ModelHow will the company make money?
What’s the lifetime value of customers?
What’s the customer acquisition cost?
Can the company build cost-effective and scalable distribution channels?
Check metrics vs industry benchmarks
TeamStartups are accelerated learning.
But you only learn if you work alongsidegreat / smart / cooperative people
You’re betting your career on theability of the founders to achievea rare success
This should be 80% of your decision
FinancingIs it well-funded? Check history andask for future financing plans
Ask for burn rate, run rate, runway
What milestones/achievements will beneeded to achieve next funding or profit
Ask VCs or angel investors for feedback
Work lifeWorkplace culture is more than free pizza
Learning and training opportunities
Work practices, tools, methodologies
Work ethic – startups are hard workbut beware of management by heroics
Due DiligenceAsk for references
Ask to speak to employees or investors
Get feedback from friendly investors orentrepreneurs
Google founders, employees
Ask customers
Be diligent, NOT paranoid
Startups are messy and risky. Don’t expecteverything to add up 100%
If it doesn’t feel a bit risky, you came late
Do it before 30 if you can
If it fails, it’s not the end of the world
Are you hiring?
Workable is a beautifully simple recruitment tool for startups and fast-
growing companies. Try it out at www.workable.com