There is so much hype around being the founder of a startup. Yeah, the world needs more founders, but sometimes I feel like people want to start something because the title is sexy or they’re going to get rich. The reality is being a founder is really, Really difficult, and it’s not for everyone.
But there’s good news: You can enjoy much of the same fun and experience of being a founder by joining an early-stage startup. Specifically, I am referring to being one of the first ten employees of a company that has raised between 2 and 5 million dollars from good investors.
So if you’re looking to join a fast-growing young company and accelerate your career, the early stage is your sweet spot. Here’s why and how you can find those opportunities.
The advantages of joining a seed stage startup
Yes, there is a risk in joining an early-stage startup. But I think the level of risk is greatly misunderstood and exaggerated. It is very different from the level of risk that a founder takes from scratch.
βJoining an early-stage startup will also give you a title boost and more experience to catapult you into your next job.β
An early stage business is still so early that it can really be an integral part of shaping your future. It’s fun and has very similar vibes to being a founder.. There is the camaraderie of working together to make something work that can often be lost in later stages when too much time and energy is spent trying to implement systems or undo legacy ways of doing things. And if you’re a generalist, you’re likely to be involved in many different aspects of the business, from sales to engineering to fundraising, expanding your skill set. That’s very similar to a founder’s broad view of a business.
Joining an early-stage startup will also give you a title boost and more experience to catapult you into your next job.. Even if you have to take a small pay cut (which in reality is usually not that big), you will earn even more in your next position given your experience solving real-world problems and having a level of responsibility that people in a corporate setting won’t be able to. equalize.
Startups are often quite open to negotiating titles: If you have a job in mind after start-up, don’t be afraid to negotiate the title that you think will get you where you want to be in your next role.
This is especially relevant for people who don’t have a lot of experience and are early in their career. If you join a startup that is in a post-seed stage, the team will be large enough that the founders will seek out proven specialists for the roles. At that stage, you won’t be given a chance to punch above your weight.
I know I started out by saying that not everyone is meant to be a founder or should feel the pressure to be, but joining a team early will give you the experience you need if you decide that’s the path you want to take. Being involved in a company’s formative days is an experience investors rate highly, in case you’re thinking of raising money for your own startup.
The only reason people often advise against joining early-stage startups is compensation. The company does not yet have the track record or the money to pay big salaries. But base salary is often not as bad as you think. You’ll probably also get enough capital to get rich if the start-up is successful.
How to find an early stage company to join
So how do you find the perfect early stage company to join? Young companies are by virtue risky, but one that has been backed by reputable investors is much more likely to have great potential.
- Take a look at the companies that have recently joined prestigious accelerators like Y Combinator;
- Reach out to top tier venture capital firms, tell them what position you’re looking for and attach your resume, then ask them “Which new companies are you most excited about?” Venture capitalists love helping their startups find great talent, so they’ll be happy to welcome you.
- Follow the tech media to see who has recently raised a seed round. A startup that has just emerged is definitely one in search of talent.
When interviewing with new companies, here are some important things to keep in mind when evaluating the company:
- Do you get along and believe in the founders?
- Do you believe in the vision?
- Do you connect with the problem and the product? Are you excited to work on it?
- Is the team open to you showing that you can grow in the role you want to play?
- Do you have similar approaches to product creation as theirs? For example, it can cause a lot of friction if the team likes to build rudimentary MVPs. [minimum viable products] and prefers products with a good scope and fully developed.
- Similarities in work ethic: Some teams work late, others don’t. Make sure you’re on the same page about work-life balance as the startup you’re joining.
Why an early-stage startup may not be right for you
It will be like a roller coaster, there is a high chance that the startup will spin, things will not work, etc. You have to be able to take those turns and enjoy the ride.
You’ll have to get your hands dirty. Small startups are very rudimentary and do things that don’t scale, which means not all of their work will be glorious. If you’re an engineer, you may have to put together less than perfect MVPs, and if you’re a business person, you’ll have to do a lot of manual tasks.
Be prepared to deal with less structured guidance and tutoring; While the team will be there to help you, they are all very busy. This means that many times you will need to perform ambiguous tasks and be quite autonomous and do a good job. Early-stage startups are different from large companies in that they don’t have the resources for strong training and mentoring programs.
But if those risks and uncertainties sound exciting rather than scary, you might not be making a better choice than joining an early-stage company.
Yarden Shaked is the co-founder and CEO of Varos.