Startups are really risky. And, if you are looking to join one, know going in you have a 9 in 10 chance that company won’t be in business within a couple years from now, and you’ll have to be looking for a new job again. Venture capitalists can get around these odds, by investing in ten companies, hoping one hits it big, with a portfolio driven mindset. Unfortunately, you as an employee, only get one “bite at the apple” at a time, since you cannot concurrently work for ten companies.
That means, if you are looking to join a startup, (i) make
sure you interview at least 10 companies, before picking one to join (yes, I
said YOU interview them—you are not picking a job, you are making an investment
bet); (ii) make sure you pick one that
has solid fundamentals in place for success (be sure to read Red Rocket's Definitive Checklist for Startup Success, to learn what that means); and (iii) you can’t think about it with a
specific role in mind—with an early stage company about to take off, sometimes
you just need to jump on board anyway you can, buckle up, and enjoy the ride.
This is an entirely different mindset than most people have
when looking for a job. We have been
programmed to look for job postings of companies hiring, apply for those
specific roles and hope you get a call.
That process, in general, is broken, even for big companies, with too
many applicants, and not enough returned phone calls from your applications. And, with thousands of startups hiring, placing job postings, you have no idea which ones of those have a fighting chance for
success.
What I am suggesting is to think like a venture capitalist
when looking for a startup to join. A VC
may look at 1,000 business plans a year and only invest in 10 of them. And, they don’t want to invest in strangers;
they prefer to invest in successful people they know or were credibly referred
to them (so work your networks). And,
let’s face facts, it is often a herd mentality, they want to find the “hot”
companies. And, often times, that means
following the money. If other respected
investors have cut a check into that company, assume they have done a lot of
due diligence, and that company must be on to something interesting. And, if a startup has successfully raised
professional capital, they are one step further along in their development
curve, to lower the odds of going out of business, and increase your odds your
career move will have longevity.
So, with this all said, once you have found that company to
“invest” your time in, make sure you get a meaningful equity stake to make it
worth the risk and effort, and jump on board in whatever opening they may have
at that time. And, even if they don’t
have an opening, creatively figure out how to create a role for yourself. In early stage companies, there is often a
wide range of work to do, and “jacks of all trades” can come in handy, especially
if you are willing to put in some “sweat equity” (work without cash salary) for
some period of time.
I am not saying, you as a technologist should try to fit
into a finance role, as those skillsets are too far apart. But, what I am saying is, you as a proven
marketer, may be able to fit into a marketing, sales, business development or
general management role. So, be flexible
in your thinking, as it is more important to find the right company, than the
right role at these early stages. Happy
hunting!
For future posts, please follow me on Twitter at: @georgedeeb.