Ask HN: Is traditional startup hiring advice outdated?

1 points by gemeral 331 days ago | 3 comments

For context, I work in one of the hot AI startups, so this is not generally applicable to everyone, but...

Traditional startup hiring advice, before I left my cushy big tech job, was: 1. Startup equity is worth zero/should be valued at zero 2. You will have to wait 5-10 years before you can access liquidity 3. 99% of startups fail

But in my experience, joining at the right time can limit your downside, many are offering liquidity events now, and idk, telling everyone to value their equity at zero seems a bit...premature, or excessive? If you do that, then why would anyone ever work at a startup? [I sometimes jokingly wonder if it's a psyop spread by big tech companies to retain talent :)]

The startup field has changed a lot in the past years, so I'm wondering if that traditional advice was perhaps more accurate in a time when unicorns were actually unicorns, or when startups really were paying less in base, equity, and bonus. What's some more nuanced, up-to-date advice you'd give?

barchar 329 days ago |

It's always been wrong unless you think spending $50k or whatever to exercise and having the shares go to zero means the options had a value of $0. If you think that you're a moron.

Obviously you aren't diversified and don't have preferred shares like investors but otoh you receive a salary.

Some startups will issue almost worthless amounts of options then sell em to you based on the hypothetical future (usually not discounted) value assuming a successful exit. This is shitty. Don't work for them.

I think if you are a new graduate with minimal or negative net worth then going to big tech makes sense, but as more and more of your wealth accumulation comes from investment gains vs income you may find you have achieved the "safety" you were chasing and the stability has become insuring yourself against an outcome you don't care about in exchange for knowing you'll be the richest guy in the graveyard.

lhmiles 331 days ago |

Don't accept a 12 month cliff

gemeral 330 days ago | |

12 month cliff is standard in the industry though even at larger, established companies