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Re:If founders treated their investors the same way they tre... by seibelj on Tuesday August 18, 2020 @10:14AM (#24198783)
Valid reasons to work for a startup:

- You are a cofounder.

- You have little experience and you are using this to break into the industry, and get experience on many different technologies ("wear many hats").

- They are working on a very specific problem or using a specific technology that you strongly desire to work on and it's difficult to do it anywhere else.

- You want to work a certain way (remote, on the beach, whatever) and they are willing to go this route.

Invalid reasons for working at a startup:

- Getting rich off stock options.

- Making a lot of money in salary.

- Work / life balance.

- Stability.

Re:If founders treated their investors the same way they tre... by lkbm on Tuesday August 18, 2020 @11:20AM (#24199718)
Main reason: it's more fun.

I could be a cog in a giant corporate machine, or I can have a measurable impact where I work.

I can stay in my lane and do my specific job tasks, or I can run around putting out fires and helping wherever help is needed.

I mindlessly build the specific design product handed me, or I can guide my own work in accordance to the needs of our customers and the business.

I can follow policy and fill out forms when making any decision, or I can just do what's right because who has time to write policies and look over approval forms?

tbf, tech is relatively good at a lot of these. As I understand it, Facebook gives a fair bit of latitude to engineers, and Google used to be famous for their 20% time. But the longer a company exists, and the bigger it gets, the more bureaucracy and controlling it'll get. Every big disaster means a new policy on how to prevent future disasters.

I think pg wrote an essay stating that the most valuable skill in an early startup employee is "helpfulness" (maybe not though -- cursory search didn't find it). You do what needs to be done.

This is roughly your "wear many hats" point, but more than just different technologies, and not just being new. If you just want to have a well-defined, steady, sane-every-day job, a startup is terrible. If you every want to say "that's my job", a start-up is terrible. If you're the sort of person people will come to for help with whatever comes up (and enjoy being that), start-ups can be great.

Re:If founders treated their investors the same way they tre... by bquinlan on Tuesday August 18, 2020 @11:52AM (#24200182)
>I could be a cog in a giant corporate machine, or I can have a measurable impact where I work.

I think that point can support working for either a big company or a small company depending on what type of impact you are looking for.

I've worked for startups in the past and have had a huge impact on the startup but almost no impact on the outside world because the startups just weren't tackling very visible problems.

Now I work for Google and I have basically zero impact on Google i.e. basically nothing that I can do will ever move the dial in terms of Google's revenue, etc. But I've worked on several projects that have had a big impact outside of Google. For example, I was on a small team (3 people) that developed the Python 2.7 runtime for App Engine (this was a while ago) and I was on another small team that implemented the server-side infrastructure for the Google Home. I also developed the screensaver for Chromecast - which is a tiny tiny project - but still millions of people love it.

Re:If founders treated their investors the same way they tre... by acwan93 on Tuesday August 18, 2020 @01:40PM (#24201679)
I agree with this mentality. I was at a FAANG company as well, and some of the projects I worked on had a small impact on the company but a huge impact on a certain group. 4% of a billion users is the total population of Canada.

Now that I'm at a startup, I'm making a huge impact on the startup, but it's having very little impact on the outside world and the industry. I guess the hope is that one day the startup will have impact on the world, but very few ever do.

Re:If founders treated their investors the same way they tre... by mediaman on Tuesday August 18, 2020 @06:59PM (#24205338)
It's an interesting choice.

Which do you prefer?

I'd prefer having an impact on the company versus an impact on a large number of users, because I would experience the impact on the company every day, but at the big company, the feeling of satisfaction from running into random people who have used what I made would still be somewhat infrequent.

Re:If founders treated their investors the same way they tre... by achow on Tuesday August 18, 2020 @11:20PM (#24206835)
> ..but at the big company, the feeling of satisfaction from running into random people who have used what I made would still be somewhat infrequent.

Online forums, discussion groups etc. can makes them very frequent, global, profound and in many cases very visible to your friends & families - who otherwise would not know what you are working at the small startup.

Re:If founders treated their investors the same way they tre... by filleduchaos on Tuesday August 18, 2020 @02:20PM (#24202211)
> I think that point can support working for either a big company or a small company depending on what type of impact you are looking for.

For a lot of people, "I want to have an impact where I work" is more about their own ego and sense of importance than about impact on other people's lives. This is not a value judgment, by the way - wanting to feel like more than just another faceless disposable drone is a valid desire.

Re:If founders treated their investors the same way they tre... by lkbm on Wednesday August 19, 2020 @12:01PM (#24211858)
It's a more salient feeling. I worked at a school for a while, and you can have deep impact on a handful of lives. It doesn't scale, but you can really feel the effect.

On the other hand, if I submit a patch to Chrome that makes it 0.00001% faster, it's a much bigger impact -- millions of hours saved -- but it's an impact you can only see in aggregate statistics. No individual will even notice the effect, so it's much harder to see or feel. It's more abstract. You have to be pretty analytical to get the same level of satisfaction, even if you've done more to benefit people overall.

Re:If founders treated their investors the same way they tre... by brailsafe on Tuesday August 18, 2020 @10:17PM (#24206517)
I'd argue that people conflate "having an impact" with "creating a product" rather than "having an impact" with having visible prestige. I used to think the former, but not after having experience interacting with people who want to be middle managers of middle managers. Those people want power and mostly don't care about impacting anything outside revenue increases that can be easily tied back to their name.
Re:If founders treated their investors the same way they tre... by acjohnson55 on Friday August 21, 2020 @06:49AM (#24233765)
I would suggest that you've had experiences with bad middle managers. I say this all the time, but I only began to appreciate middle management when I became a front-line manager. An effective middle manager makes a whole boat full of people feel secure and strategically focused. They figure out how to leverage the strengths of their front-line managers and senior-level ICs, and how to fill in gaps. They know how to manage upward towards the executive layer, to acquire resources and summarize a great deal of complexity.
Re:If founders treated their investors the same way they tre... by filleduchaos on Tuesday August 18, 2020 @11:05PM (#24206758)
Apologies, but I don't quite see what this has to do with the point I was making.
Re:If founders treated their investors the same way they tre... by Apocryphon on Tuesday August 18, 2020 @02:31PM (#24202364)
Avoiding the alienation of labor, as Marx might put it.
Re:If founders treated their investors the same way they tre... by jchallis on Tuesday August 18, 2020 @01:29PM (#24201519)
The chromecast screensaver is the background on the TV in my Airbnb. Multiple guests have told me how much that screensaver makes them feel at home when they travel, and makes the world a little less strange.
Re:If founders treated their investors the same way they tre... by rmellow on Tuesday August 18, 2020 @04:30PM (#24203977)
Fun fact: those screensaver photos are taken by Google employees!

Can't find a source for that, but have many times corroborated that through a Google search. Peter Norvig is one of them.

Re:If founders treated their investors the same way they tre... by Naracion on Tuesday August 18, 2020 @08:36PM (#24205963)
I'm unsure which screensaver photos we're talking about--but if it's the nature photography (and others that you can choose from) which play when nothing is casting to Chromecast, then I have at least one instance where I have seen photos by a person I know is a photographer and not a Google employee (Trey Ratcliff).
Re:If founders treated their investors the same way they tre... by mlboss on Tuesday August 18, 2020 @12:44PM (#24200910)
Screensaver in chromecast is awesome!!!
Re:If founders treated their investors the same way they tre... by arbot360 on Tuesday August 18, 2020 @12:46PM (#24200944)
I love the screensaver for Chromecast, thanks for that.
Re:If founders treated their investors the same way they tre... by ping_pong on Tuesday August 18, 2020 @12:55PM (#24201066)
It's a lot of fun until the company gets acquired and you get $80k for your 4 years of hard work, and the founders get $50M.

Source: happened to me with a YC startup.

Re:If founders treated their investors the same way they tre... by GFischer on Thursday August 20, 2020 @12:58PM (#24225472)
80k is a lot of money, but this must suck, especially if you feel like you were an integral part of the company's succcess - some German researchers found that compensation perception is more on "fairness" than the actual numbers, if you'd made 80k and the founders 200k, maybe you'd have been OK with it.
Re:If founders treated their investors the same way they tre... by Peaches4Rent on Friday August 21, 2020 @04:52AM (#24233248)
I know research is good, but you really don't need research to figure that out. You don't want to feel screwed over
Re:If founders treated their investors the same way they tre... by rpastuszak on Tuesday August 18, 2020 @01:55PM (#24201881)
> Main reason: it's more fun.

Agreed, although things can get much less fun once you end up burned out.

I think this Tweet does a decent job at describing the tradeoffs/challenges:

    > Typical designer mid-career crisis.
    > 
    > * You want to stay hands on
    > * You want a relaxed, low stress environment doing “meaningful work”
    > * You want to maximise your earning potential
    > 
    > The majority of roles you see force you to pick just two.
Source: https://twitter.com/andybudd/status/1204458288118714370

---

Minor digression: now, not all startups are completely hectic, option-fueled sweatshops. I'm talking about the default picture that comes to my mind when I hear this word. The most successful small startups I know are quite the opposite in fact. Well, I guess having an actual market, solving a real problem is important. (OK, "scale-ups" are the f*cking worst still as you end up with chaos and inability to get work done).

Re:If founders treated their investors the same way they tre... by JumpCrisscross on Tuesday August 18, 2020 @07:19PM (#24205484)
> it's more fun

I recommend everyone spend some part of their career in a 1 to 20-person shop, a 20 to 200-person shop and a 2,000+ person shop. (I don’t have experience in 200 to 2,000.) They are vastly different work environments.

I thought I was a 1 to 20 guy; I’m not. I want enough structure to let me specialise without letting bureaucracy get in the way. Twenty to ~two hundred.

Start-ups are fun, but they’re also stressful. If you get unlucky, they can also leave you materially less wealthy than you could have been with more stability.

Re:If founders treated their investors the same way they tre... by episteme on Tuesday August 18, 2020 @11:36AM (#24199958)
I'm not sure you can say the startup impact is measurable either. You certainly can't measure it by monetary value.

Mindlessly building what is handed to you is a culture problem and not a company size problem. Some startups have less freedom than some corporations but both usually grant more freedom to more senior people.

You can still 'wear many hats' at some mega corps too, if the company only has 'engineer' as a title then you are expected to basically do 'everything' . The team you are on will decide what the balance is though.

I think all of what you said could apply to both sizes of the companies.

Re:If founders treated their investors the same way they tre... by vlunkr on Tuesday August 18, 2020 @11:46AM (#24200074)
Both of these comments make good points, but are two ends of a false dichotomy. Not every startup is going to have horrible work/life balance, and not every job at a big company is going to be boring and soul crushing. And there are all sorts of jobs in the middle and to the side of this spectrum.
Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @01:09PM (#24201251)
I'd even say it's more specific to the individual and not just the job. I have a boring, soul crushing job, but to someone else it might be their dream.
Re:If founders treated their investors the same way they tre... by moron4hire on Tuesday August 18, 2020 @01:46PM (#24201741)
Everything you're talking about is really just small companies, not startups at all.

Go to work for an established, profitable, small company. Make a good salary and have a fulfilling career.

Re:If founders treated their investors the same way they tre... by perl4ever on Tuesday August 18, 2020 @05:48PM (#24204752)
>If you're the sort of person people will come to for help with whatever comes up (and enjoy being that), start-ups can be great

That's kind of odd from my perspective, because that's exactly my niche, and yet, my very first job was at a startup (of about 3 people besides me), where I was a rapidly jettisoned cog, and every since I've gone to progressively bigger and more bureaucratic organizations while seeking, I guess, less definition of my role.

Re:If founders treated their investors the same way they tre... by alecbenzer on Tuesday August 18, 2020 @05:08PM (#24204364)
Been at 2 series A/B startups for the past ~3.5 years. It was a really fun 3-6 months followed by 3 very not fun years.

My N is low, they were both non-Bay (NYC) startups, maybe some startups are fun, maybe I'm really bad at picking startups, but I think a startup's culture is often as much or more of a crapshoot than the startup's business.

Was at Google before, and it was fun for only a bit as well, but definitely not as actively non-fun as my last 3 years has been.

Re:If founders treated their investors the same way they tre... by skrebbel on Tuesday August 18, 2020 @10:52AM (#24199314)
Frankly I'm getting tired of this drum HN keeps beating about startups not offering a good work/life balance. Some startups don't, true. Some FAANGs don't either, what's the difference?

I know plenty of startups that have a sane working culture as a key point of differentiation in the job market.

Re:If founders treated their investors the same way they tre... by drchopchop on Tuesday August 18, 2020 @11:06AM (#24199532)
Agreed, I am 40+ and am a CTO at a startup which has great work/life balance. We pay approximately market (for a normal dev job, not FAANG), haven't had people do overtime in well over a year, are transparent about finances, and have practically zero politics. It is also possible for a startup to be "stable", especially if it's bootstrapped/profitable.
Re:If founders treated their investors the same way they tre... by high_derivative on Tuesday August 18, 2020 @11:43AM (#24200042)
'have practically zero politics' tingles my bs-meter. How would you know how your employees feel about this? There is always politics. Of course not for the ones who cannot be promoted further, but for everyone else. My boss not acknowledging the existence of politics would be a red flag to me.
Re:If founders treated their investors the same way they tre... by hehsjsbb on Tuesday August 18, 2020 @12:36PM (#24200810)
Politics isn't just about promotion. It's about what kind of work people get to do, whose opinion is respected, etc.

I don't care about getting promoted in my current role (at a small start-up where the eng org is flat), but I'm miserable because there's obviously a clique of people who are "trusted" and take over the technical direction of anything interesting. What's left is basically just implementing their ideas and then having them rewrite it on you or nitpick it in PRs until they practically wrote it.

Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @01:11PM (#24201279)
Well said. I feel your pain.
Re:If founders treated their investors the same way they tre... by paul_f on Tuesday August 18, 2020 @06:19PM (#24205021)
I have worked in plenty of places where there is little drama. These are usually run by well respected, competent managers who are also transparent. If you always run into office politics, the problem could possibly be you.
Re:If founders treated their investors the same way they tre... by hitekker on Tuesday August 18, 2020 @07:08PM (#24205409)
By the same token, if you don't notice anyone suffering around you, the problem is probably you.
Re:If founders treated their investors the same way they tre... by Spooky23 on Tuesday August 18, 2020 @09:58PM (#24206432)
Three people on a road trip have politics. There are degrees though.

I’ve worked in places with nasty politics. It’s brutal and awful.

In a smaller place with a flatter org, you’re usually going to have less nastiness, for the simple reason that there aren’t any bullshit roles with organizational power. Bullshit attracts assholes.

When small companies suck, it’s usually because the owner is a jerk.

Re:If founders treated their investors the same way they tre... by e1g on Tuesday August 18, 2020 @11:48AM (#24200119)
You might work at a small or young company that is not a startup. A "startup" is a specific type of business designed for rapid growth. If there are profits, that means holding cash in a bank offers better returns that re-investing into sales/operations which implies there is no fast growth.
Re:If founders treated their investors the same way they tre... by drchopchop on Tuesday August 18, 2020 @12:14PM (#24200509)
We are small (<$5M ARR) and were indeed re-investing excess cash into hiring/ops, which actually caused significant problems when COVID hit and our revenue dropped.

So I'd call that a startup? It's not like we're not trying to achieve rapid growth, we just haven't found the secret magic yet to turn into a unicorn. Doesn't mean we're not trying.

Re:If founders treated their investors the same way they tre... by kevinmchugh on Tuesday August 18, 2020 @11:46AM (#24200080)
Loose definitions of "startup" means there will be lots of exceptions or talking past each other when one tries to make declarations about the nature of startups.

One popular definition of "startup" (Steve Blank's) basically precludes profitability.

Re:If founders treated their investors the same way they tre... by me_me_me on Tuesday August 18, 2020 @12:27PM (#24200691)
Maybe its a matter of language.

A typical HN startup is wannable Unicorn get rich quick scheme. Maybe we need a new term for that.

Re:If founders treated their investors the same way they tre... by Justsignedup on Tuesday August 18, 2020 @11:14AM (#24199645)
Critical. I have been part of multiple startups that have fantastic work/life balance.

In one case I'd get meetings like "hey, I know you have a kid and all, but we're hitting a deadline soon. Just to let you know next week you're probably gonna have to put in extra hours. But I didn't want to sneak it on you. Let me know if there are any days you can't work extra so I can make sure the other days are covered by someone else." and other times not count my hrs if I work 7.5 hrs or 8.5 hrs in a day.

Startups can be kind. It just has to come from up top.

And I'm not even talking about my current startup which is significantly better.

So yeah. Don't think that startups are all shit. I interview the founders. Are these the people I want to work for, I want to make rich, I believe in.

Re:If founders treated their investors the same way they tre... by nicoburns on Tuesday August 18, 2020 @08:25PM (#24205909)
Am I reading that right that you consider 7.5 hrs or 8.5hrs a day to be not very many hours? (Not counting suggests that they might otherwise expect you to do more than that).
Re:If founders treated their investors the same way they tre... by paul_f on Tuesday August 18, 2020 @06:21PM (#24205039)
Love this! Curious, is this a California company or somewhere in flyover country? (I see this style often in Texas companies)
Re:If founders treated their investors the same way they tre... by pjmlp on Tuesday August 18, 2020 @11:39AM (#24199984)
I have been at this for a while, reaching mid-40's, and the truth is while there are startups with life balance stories and corporations with unlimited overtime, the stereotypes really apply for the large majority of companies.
Re:If founders treated their investors the same way they tre... by mdorazio on Tuesday August 18, 2020 @11:17AM (#24199683)
The difference is percentages. I am highly confident that if we looked at a large number of high-growth startups and then at the top ~10 paying tech companies and compared the work/life balance, the disparity would be abundantly clear. In other words, you are much more likely to have good work/life balance at a large tech company than at a high-growth startup. Individual examples to the contrary will obviously exist on both sides, but don't negate the reality of what the average employee is likely to see.
Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @01:15PM (#24201349)
I'm an average employee. I am likely to see shitty stuff throughout my career.
Re:If founders treated their investors the same way they tre... by SkyPuncher on Tuesday August 18, 2020 @11:38AM (#24199972)
Same here. I work at a startup with competitive pay and great work-life balance. I think people are becoming aware that startups should be treated like any other job (unless you're an early employee with significant equity).
Re:If founders treated their investors the same way they tre... by ownagefool on Tuesday August 18, 2020 @11:06AM (#24199538)
In general, the difference is bucket loads of cash.
Re:If founders treated their investors the same way they tre... by HelloNurse on Tuesday August 18, 2020 @11:59AM (#24200277)
This article is about work/money balance and specifically money/money balance.
Re:If founders treated their investors the same way they tre... by mac01021 on Tuesday August 18, 2020 @11:28AM (#24199858)
I worked as a software engineer for a large media company, outside of any tech hub.

I switched to working remotely for a San Francisco-based startup because they offered me a 30% raise over what my current employer was willing to pay.

Two years later, when working for the startup became less palatable, I went back to my old company. My manager there struggled with the HR dept as hard as they could and got them to just match my startup salary in order for me to come back.

Which I guess is just to say the parent comment is not universally correct.

Re:If founders treated their investors the same way they tre... by marcinzm on Tuesday August 18, 2020 @10:56AM (#24199384)
> - Making a lot of money in salary.

Startups pay more in salary than non-tech non-finance companies do in total comp. Startups that are far enough along (pre-IPO Uber, Lyft, etc.) pay more than FAANG (the RSUs aren't liquid but you need to only wait a year or two).

Re:If founders treated their investors the same way they tre... by trimbo on Tuesday August 18, 2020 @11:18AM (#24199703)
Uber employees who joined in 2015 actually saw their RSUs decrease in value by the time the lockup ended in 2019. 4 years of working at a pre-IPO unicorn for negative growth.

Heard this from multiple people but here's an article: https://www.financialsamurai.com/how-uber-employees-failed-t...

Re:If founders treated their investors the same way they tre... by marcinzm on Tuesday August 18, 2020 @11:23AM (#24199775)
That depends totally on the RSU package they got when they joined. Negative growth if the package was 50% higher than their previous or FAANG comp is still a net gain.
Re:If founders treated their investors the same way they tre... by trimbo on Tuesday August 18, 2020 @12:11PM (#24200462)
If it was 50% higher when they were hired, they still probably made less. All FAANG stocks climbed 100+% over the same timeframe. Amazon, 500%.

[Edit] But... I think you might have missed the point. The reason to join a pre-IPO company is to make far more money post-IPO when the stock rises. Joining Facebook in 2008 or Google in 2000 would be equivalents here, and those people became very, very wealthy on the day of the IPO due to this pop vs when they joined. Uber employees who joined 4 years before IPO had their stock drop instead.

Re:If founders treated their investors the same way they tre... by pb7 on Tuesday August 18, 2020 @11:40AM (#24200002)
This is true and was the case for some people but if you had taken an Uber offer, for example, to Facebook or Google, they would have matched it.
Re:If founders treated their investors the same way they tre... by ping_pong on Tuesday August 18, 2020 @12:58PM (#24201108)
Not 2015, but definitely 2016-2018.
Re:If founders treated their investors the same way they tre... by Swizec on Tuesday August 18, 2020 @11:19AM (#24199712)
Personally I like to work with startups because:

- they pay more than enough for my near-term financial goals

- the equity is ok

- they let me work on sidehustles

- I get to work on stuff that is truly make or break for the company, not some bullshit pet project a PM needs to get promoted

Re:If founders treated their investors the same way they tre... by pb7 on Tuesday August 18, 2020 @11:44AM (#24200055)
Wouldn't it feel like it's a little bit bullshit if the company went out of business shortly after and all that work was for nothing? All of our work is so ephemeral.
Re:If founders treated their investors the same way they tre... by dilyevsky on Tuesday August 18, 2020 @01:15PM (#24201359)
Same happens in big cos when sometimes hundreds or more engineering years are scrapped purely because of internal political wars or “reorgs”
Re:If founders treated their investors the same way they tre... by pb7 on Tuesday August 18, 2020 @01:46PM (#24201735)
That's precisely my point. Startup work is not any more meaningful or everlasting than work at a big company. GP claimed PMs at big companies only come up with meaningless work but I think the work is meaningless almost everywhere. Every human needs purpose but pouring yourself into something that is very likely to have so little permanent impact seems foolish. I think there is a desperate call for balance in life which is why work-life balance provided by stable companies is valuable, not because the work you do there is any more or less important than a startup.
Re:If founders treated their investors the same way they tre... by Swizec on Tuesday August 18, 2020 @02:34PM (#24202412)
> Startup work is not any more meaningful or everlasting than work at a big company

That wasn’t my intended point. I want to be a profit center, not someone you keep busy because you can.

At Google, for example, I’d wanna work on search, ads, or data mining. But I wouldn’t wanna work on chat.

At Uber, I’d wanna work on the driver orchestration machinery, not on some opensource side project they have.

I find at startups it’s easier to get to work on the company’s main core thing. And that’s where I like to be.

If the whole company ultimately proves meaningless, that’s just life.

Re:If founders treated their investors the same way they tre... by dilyevsky on Tuesday August 18, 2020 @02:18PM (#24202176)
I disagree - it’s just way harder to come by any meaning in the corporate world than it is in startup. Startups have to assign meaningful work to everyone they hired or they die. Not so for big (or even medium) corp so they have to play the “work life balance” card so you don’t blow your brains out from boredom. Ofc that also means big cos are more welcoming to people who didn’t want anything to do with their work in the first place and just in it for the paycheck (nothing wrong with that) and it’s always a spectrum.
Re:If founders treated their investors the same way they tre... by znpy on Tuesday August 18, 2020 @12:02PM (#24200326)
So far I stayed away from both startups and consulting companies (Accenture, NTT Data and similar) and it went fairly well.

One day I'll reconsider this choice, probably when I'll have a bit more of financial stability (read: bought a house and paid it in full) and can afford some more risk.

Most people seems to overlook the fact that most startups die within a year, and some more startups drag a long death march before dieing.

You might have fun or do crazy interesting things, but if the company goes bust it might not be pretty.

For the moment, I'll stay conservative about this kind of things.

Re:If founders treated their investors the same way they tre... by thinkingkong on Tuesday August 18, 2020 @10:30AM (#24198976)
The invalid reasons are all accurate. The only challenge is (almost?) everyone has a friend or colleague that worked at Slack or Uber and made stupendous amounts of money; far in advance of what they would get at a FAANG. It doesn't take into account luck & risk, but this kind of casual relationship with successful startups colours peoples expectations in a different light.
Re:If founders treated their investors the same way they tre... by brogrammernot on Tuesday August 18, 2020 @11:26AM (#24199822)
How much money do you actually need though?

I’ve worked for 5 startups now and my equity payout has been 0, 0, 0, 0, and now I stand I make low 7 figures from the equity on this last company (publicly traded now).

During those startups the following happened: - I saw my nieces and nephews so little they forgot my name. They were young, sure, but it still stung when they look at you like a stranger

- Messed up a 8+ year relationship with my significant other and we haven’t talked in years

- Let my student debt pile up to take on more equity than salary (dumbass idea for the record)

- Lost friends along the way because I could never do anything

- Missed many family/friends birthdays as I was working

- Worked 80 hour weeks for a long time

What did I feel after I saw my equity/stock rise to above 7 figures? Stupidity. I gave up a lot on my journey and money can’t get it back, in fact, the money I stand to earn doesn’t enable me to do much more than what my salary already does. I can travel, eat well, have luxury goods if I want (I’m not that type of person but anyways), and so forth.

My point being that this was a.) self-inflicted and b.) not worth the combined opportunity cost of all of those years.

So for every “friend” who made lots of money at Uber or other places, there’s a story like me or a story where someone’s never made anything from equity because profitable exits are fucking hard

Re:If founders treated their investors the same way they tre... by cmorgan31 on Tuesday August 18, 2020 @12:57PM (#24201097)
Well we also don't open up about mistakes as often as successes. I'll share mine which is a mixture of both.

The article is basically a rehash of my experience in a start up as the first engineer for a technical founder. I spent the next 6 years growing the company, my skills, and my experiences. I was constantly provided more salary and stock options until I had so many options I could not reasonably exercise them without taking on massive risk. I had to consistently request the status of the option pool to even know what percentage I was granted. When I left the company I effectively had 3 months (Nov 2019 - Feb 2020) to make a decision. I'm personally glad I was conservative and did not exercise them given the outcome of COVID in the US.

I don't regret taking that job at all as it helped me become a very skilled technology professional despite not having a prestigious educational background. It opened new doors which would have otherwise been closed until I had an equal opportunity to prove myself at scale. I do regret the extra hours worked which led to burn out and health issues as well as not being more bullish on salary until later in my career.

Re:If founders treated their investors the same way they tre... by 9erdelta on Tuesday August 18, 2020 @12:55PM (#24201070)
Working ridiculous hours at a startup (I can barely remember anything from 2016) really drove home to me that time is way way way way way more valuable than money. Use it wisely (unfortunately wisdom is hard to get before the time has been wasted). Took a few years to get out of startups but I'm out (ish) now and I'm way more picky about how much time I'll work on something these days.
Re:If founders treated their investors the same way they tre... by justinclift on Tuesday August 18, 2020 @01:34PM (#24201609)
> ... now I stand I make low 7 figures from the equity on this last company (publicly traded now).

Isn't that a "never need to work again" situation though?

eg, you've effectively freed up your future to put time into whatever you want?

Re:If founders treated their investors the same way they tre... by phone8675309 on Tuesday August 18, 2020 @03:08PM (#24202923)
Low 7 figures to me would be between $1,000,000 and $3,000,000.

I don't think that I would call that "never need to work again" money. It's between 10 and 30 years of my salary.

A good lump sum to stash in the retirement fund. Maybe retire at 55 instead of 65, but definitely not "never need to work again" money.

Re:If founders treated their investors the same way they tre... by icedchai on Tuesday August 18, 2020 @05:11PM (#24204401)
It depends on your lifestyle. If you ask the early retirement / FIRE forums, they'll tell you you're good to go.

If you have 2 million, you can conservatively (meaning a low 3% - 4% withdrawal rate) take out 60k to 80k a year in perpetuity. Can you live on 60k - 80k a year? Consider you'll be paying a lot less in taxes since it's all capital gains. If your normal salary was 100k ish, you probably can.

Re:If founders treated their investors the same way they tre... by justinclift on Wednesday August 19, 2020 @12:01AM (#24207031)
It's entirely possible to relocate to a different country with a cheaper cost of living, universal health care, etc too. So, the limits of the US system should be taken as a given.
Re:If founders treated their investors the same way they tre... by wikibob on Tuesday August 18, 2020 @11:12PM (#24206798)
You make $100,000 per year? If you are in the USA you are deeply underpaid.
Re:If founders treated their investors the same way they tre... by jason0597 on Wednesday August 26, 2020 @05:27PM (#24287477)
I don't know whether I should laugh or cry at this comment...
Re:If founders treated their investors the same way they tre... by svachalek on Tuesday August 18, 2020 @03:03PM (#24202836)
3% is a pretty good rule of thumb for perpetual withdrawal rate. If it's say $1M after taxes, that means $30k/yr. This is enough to retire on but only if you're willing to make lifestyle changes. Probably not that hard to do if you're 30 and single and renting, but married with kids and a mortgage it's a tough sell.

(Obviously as your raise the definition of "low 7 figures" this can change dramatically)

Re:If founders treated their investors the same way they tre... by gowld on Tuesday August 18, 2020 @11:11PM (#24206793)
If you're married and retired then your partner can work and you can be primary homemaker. $60K is just enough to pay for a modest house if you're friends with HN types, though.
Re:If founders treated their investors the same way they tre... by brogrammernot on Wednesday August 19, 2020 @05:57PM (#24217190)
Other folks already chimed in, but yeah $1-3M depending on how everything ends up.

After taxes and everything, it’s not “enough” to never need to work again but yes, I would say I’m very fortunate to not have money as the concern as long as I’m not irresponsible with it.

The point was more that it easily could’ve been another $0 and in theory, the company could fail taking that $1-3M down considerably.

The salary most HNers make is way above the median and is enough to live a very comfortable life. I honestly can’t tell you if the money was worth the personal pain of the last 10 or so years, truly I don’t think it is.

Re:If founders treated their investors the same way they tre... by anon9001 on Tuesday August 18, 2020 @03:13PM (#24202990)
I'd gladly trade all the relationships I have for the ability to never work again.

If I ever finish work, it's going to be a complete reboot of me anyway.

Re:If founders treated their investors the same way they tre... by novok on Tuesday August 18, 2020 @11:01AM (#24199450)
You might of made a stupendous amount of money if you worked at Uber 2014 or sooner. 2015 or later and you had a stock that was flat or worse for 5 years at this point.
Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @01:19PM (#24201405)
I don't know anyone making stupendous amounts of money. I know of only one guy making a FAANG salary. I suck at life and I suppose the high performers socialize with their own kind.
Re:If founders treated their investors the same way they tre... by biztos on Tuesday August 18, 2020 @05:35PM (#24204630)
I've seen people hired into startups that just got their A-round and they made sub-FAANG market rate plus whatever crazy stock incentive they agreed to. And the exit strategy was usually acquisition by FAANG anyway.

So I would add as a valid reason:

- Startup will pay you as much as anyone else, and won't be boring.

Caveat: may only apply to early hires!

Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @10:20AM (#24198859)
For me I'm far too naturally transgressive to work at a large company.

I really wish I could, life would be easier, less work, less stress, pay better... None of them will take me so I keep help building and (sometimes) exiting startups.

It's really exhausting. 20 years of this... I wish more companies would value those who "challenge the book" instead of "follow the book" or that I could find a way to obediently follow it instead of challenge it.

I've honestly thought about figuring out how I could put things on ice for a few years and get a PhD, because then I'd have the proper paperwork to allow for my disposition and could finally stop this exhausting startup life.

Re:If founders treated their investors the same way they tre... by dannykwells on Tuesday August 18, 2020 @10:45AM (#24199201)
So I have a PhD, and do empathize with being "transgressive", but I'll say I think it's less about the PhD than it is about being right.

If you are bull headed and drive really hard in a new area, you better be right because you are taking responsibility and accountability for that area (whether you think you are or not). High risk, high reward - sound familiar? This is true at Google, at startups, in academia. So it's really more of a personality thing - if you're ok being obedient, you also don't need to bear the stress of accountability. But if not, well, no degree will alleviate that stress.

Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @01:23PM (#24201449)
"...if you're ok being obedient, you also don't need to bear the stress of accountability."

I agree with most of what you're say, but I think this can be wrong. Management seems to push stress and blame down to the individuals, even if they are obedient. I see a lot of stress in my job and I'm only an intermediate developer.

Re:If founders treated their investors the same way they tre... by nogabebop23 on Tuesday August 18, 2020 @10:55AM (#24199365)
>> those who "challenge the book" instead of "follow the book"

This is a valid position and one I can identify with personally, but as I've gotten more emotionally mature over time find it's a little more subtle. You need to include your risk propensity and methodology into the calculation. Even within established companies roles, teams and individual situations are going to be vastly different. Are you willing to take bet-your-career risks? Have you earned some shared vulnerability with the people you want to change? Do you truly care about them and your company? I've learned these are all necessary if not sufficient regardless of the corporate landscape.

I believe there is a third way where you work within the system to affect meaningful change (or bring it down from the inside, depending on how radical your viewpoint). I've come to the realization that small minorities want either dramatic change or none at all; the vast majority are just apathetic, which is your biggest enemy. Start-ups likely skew towards the big change camp. You can make a difference in the former environment but it is exhausting and risks turning you apathetic as well.

Re:If founders treated their investors the same way they tre... by WaxProlix on Tuesday August 18, 2020 @10:26AM (#24198922)
You should get a therapist (or a life coach?), these sorts of problems are rarely confined to just the work space.
Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @10:44AM (#24199189)
Yeah, probably. It's certainly worth giving it a go.
Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @01:26PM (#24201489)
It's funny how management tells us to think outside the box and then admonishes us when we do and they don't like it.
Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @05:51PM (#24204781)
Defending and perpetuating the power structure is what institution building is. If you won't be a steward of the dominant institutions, then you're not an extension of its power, your a transgressor to it.

"Thinking outside the box" is cute virtue signalling but honestly that's what gets you kicked to the curb.

It will always be that way for any established entity because that act is fundamentally one of disestablishment

Re:If founders treated their investors the same way they tre... by giantg2 on Tuesday August 18, 2020 @06:36PM (#24205162)
Completely agree. The only way to get power or money is to have the people who have power or money want give you some. The owner/leader of a company will only give power to others if it is necessary and they are sufficiently similar to themself.
Re:If founders treated their investors the same way they tre... by bluntfang on Tuesday August 18, 2020 @10:41AM (#24199141)
>I wish more companies would value those who "challenge the book" instead of "follow the book" or that I could find a way to obediently follow it instead of challenge it.

it sounds like you've identified a personal problem with a clear goal, the next logical step would be to shop around therapists who think they might help you achieve that specific goal. and i think it's very important to shop them. Maybe even read a few books on how to find the right therapist for you. It's important to not get stuck on one who you don't like or who isn't interested in help you the way you want to be helped. I've found with therapy that sunk cost fallacy is real when you've found one that really doesn't fit with your goals.

Re:If founders treated their investors the same way they tre... by elwell on Tuesday August 18, 2020 @10:46AM (#24199212)
I like the simplicity of your homepage.
Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @10:50AM (#24199275)
I stopped feeling obligated to being fancy a couple years ago.

It's running off a raspberry pi at my apartment and is really more about giving me access to my network of computing resources here.

I've been meaning to make a generative poetry engine and just put it there without disclosing it. It could probably be pretty believably human if it's restricted enough.

Re:If founders treated their investors the same way they tre... by elwell on Wednesday August 19, 2020 @04:01PM (#24215539)
You're reminding me of good memories. I made a (pretty bad) rhyming poem generator in middle school. Whimsical coding is a most enjoyable form.
[dead]
Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @10:41AM (#24199137)
No not at all. Nobody has ever quit under my management.

People quit bosses, not jobs and I've always kept my people. So I think I've been pretty good

Re:If founders treated their investors the same way they tre... by omarhaneef on Tuesday August 18, 2020 @11:03AM (#24199494)
Yeah, I know what you mean. I have a similar issue: just way too good looking for large companies. I could make more money and have less stress at a large company, but my good looks keep me out. Fortunately, this dinky startup is willing to tolerate someone this handsome.
Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @11:08AM (#24199562)
I'm sorry, that's really uncalled for and a complete misrepresentation of the topic. Would you like to add to the conversation instead? I'll be happy to read whatever you have to say.
Re:If founders treated their investors the same way they tre... by omarhaneef on Tuesday August 18, 2020 @11:35AM (#24199941)
I am (obviously?) kidding, which you would know if you saw me. (Too good looking for startups too).

I did not mean to upset you.

Re:If founders treated their investors the same way they tre... by kristopolous on Tuesday August 18, 2020 @11:38AM (#24199980)
You didn't! Just trying to steer things in a more fruitful direction.

In the startup world they usually call this employee waves. Hoffmann, Christensen & Collins all broke up different people as part of different waves (using different models) and that some people "belong" in certain waves. Others, such as say, Davidow and Von Hippel went into detail on how to insulate new technology from late wavers at established firms in order to successfully incubate it (Christensen talks about this as well). See Kidder's book on the Eagle project and Fergusons book on the IBM PC for some examples. Also search "sony missed ipod" for some really interesting counter-examples.

Also how BBN beat Raytheon for ARPAs IMPs is a fascinating example.

Anyway, I'm a first waver who wants to improve on being a much later waver.

Re:If founders treated their investors the same way they tre... by kyuudou on Tuesday August 18, 2020 @01:51PM (#24201816)
I'm tempted to try a cover of the old 80s/90s era song Right Said Fred "I'm too sexy for your startup"

Thanks for unglooming my day!

Re:If founders treated their investors the same way they tre... by maps7 on Tuesday August 18, 2020 @10:35AM (#24199049)
I would like to work for a startup as a way to move/improve my stack but looking at some startup job postings show that they want Googler-tier devs with decades of experience while paying nothing
Re:If founders treated their investors the same way they tre... by goatherders on Tuesday August 18, 2020 @10:42AM (#24199157)
What they want and what they end up hiring are very rarely the same.
Re:If founders treated their investors the same way they tre... by bb88 on Tuesday August 18, 2020 @10:52AM (#24199319)
I would recommend going the consulting/contracting route.

Mostly because you get to see how different companies approach problems. When you move from company to company you take the best ideas forward.

Re:If founders treated their investors the same way they tre... by hitekker on Tuesday August 18, 2020 @10:21AM (#24198866)
I'd add "Mental Health" to the bottom list.
Re:If founders treated their investors the same way they tre... by nogabebop23 on Tuesday August 18, 2020 @10:49AM (#24199268)
to add another valid (yet totally invalid) point: You want an impressive job title. At an established company you're going to be a Software Developer or Engineer level n; at a startup you can easily be Lead, Director of or even a VP if that's important to you.
Re:If founders treated their investors the same way they tre... by drchopchop on Tuesday August 18, 2020 @11:08AM (#24199568)
That can be important, especially if you've been "under-titled" at your previous job and need to reset yourself on the career ladder. It's a lot easier to go from senior -> lead -> VP -> CTO by jumping into the startup world than it is to climb the ladder at a megacorp.
Re:If founders treated their investors the same way they tre... by marcinzm on Tuesday August 18, 2020 @11:12AM (#24199621)
Sure but everyone knows the titles are inflated so it only matters if you plan to stay in startups perpetually. Megacorps won't pay any attention to your inflated title.

edit: And I've seen interviewers pause at such titles and comment "are you sure you want to work here, we can't offer you as nice of a title." So it may count against you even.

Re:If founders treated their investors the same way they tre... by nicoburns on Tuesday August 18, 2020 @08:38PM (#24205987)
The title game is a funny one. I work at a small startup where I replaced the outgoing technical founder (who used the title CTO). I manage a small team and am responsible for all the of the tech at the company. I could choose any title that I want, but thus far I've stuck with "Lead Developer" because it seems to be a well defined role. Whereas titles like CTO or VP Engineering seem pretty meaningless outside of much larger companies.
Re:If founders treated their investors the same way they tre... by MaxBarraclough on Tuesday August 18, 2020 @11:06AM (#24199537)
Is there such thing as an impressive title, in software development, if the company is unheard-of?

This is a sector where people with no relevant formal education and three years on-the-job experience sometimes get called senior.

Re:If founders treated their investors the same way they tre... by nicoburns on Tuesday August 18, 2020 @08:43PM (#24206016)
To be fair, "senior" doesn't seem to be particularly high up the ladder of job titles at tech companies these days. You get titles like "lead", "principle", and "staff", which are all considered more senior than senior.

At the end of the day, job titles are mostly for getting past recruiters. Interviewers (if they're any good) will judge you on your actual experience and capabilities.

Re:If founders treated their investors the same way they tre... by chrononaut on Tuesday August 18, 2020 @02:31PM (#24202356)
It is interesting because people perceive titles as being inflated at start-ups compared to the "equivalent role" (using your example) at an established company, and that's partially true, but it's also not.

I'd say the extent of actual impact to business relative to the entirety of the business operations probably remains roughly the same between two people with the same title at a large company and a small company. However, the potential loss (or perhaps gain) suffered from poor (or great) decision-making is likely much smaller on an absolute scale at a start-up, although roughly the same on a relative scale.

Re:If founders treated their investors the same way they tre... by dinht on Tuesday August 18, 2020 @07:30PM (#24205554)
Certainly you can get a considerable amount of salary, depending on your angle of working in a startup. In the recent career changes, I often look at 1-2 years old start-up where tech side has been rather stagnant. My angle is clear -> getting stuffs done, move the tech forward and make sure it is aligned with the company's direction

But this is not enough for founders to have a peace of mind regarding your commitment.

- If you have already built a reputation, then that's enough for you to argue for a market rate salary.

- Else you would need to trade for some equity.

What are you getting out of this compared to a corp job:

- The work is likely more interesting.

- Away from corporate landscape (if that's not your thing)

- Gaining experience in new domain, doing thing in new ways.

Re:If founders treated their investors the same way they tre... by ignoramous on Tuesday August 18, 2020 @10:33AM (#24199023)
Re:If founders treated their investors the same way they tre... by doopy1 on Tuesday August 18, 2020 @08:57PM (#24206091)
I work at a startup, not a co-founder, salary is not amazing, but pretty good - most I've ever made. Work life balance is also the best I've ever had. Just my data point.
Re:If founders treated their investors the same way they tre... by johncolanduoni on Tuesday August 18, 2020 @02:21PM (#24202215)
I mean, making a lot of money in salary is a very valid reason if they actually pay you a lot of money in salary (it does happen).
Re:If founders treated their investors the same way they tre... by KorematsuFred on Tuesday August 18, 2020 @03:22PM (#24203126)
I have learned this hard way.