Berkeley CSUA MOTD:Entry 21599
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2022/06/30 [General] UID:1000 Activity:popular
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2001/6/22 [Industry/Startup] UID:21599 Activity:very high
6/21    Anybody in a startup right now?  How is it like?  layoffs and money
        running out?  I keep getting calls from startups and I'm wondering if
        I should leave my cushy job to risk it all.  Thanks.
        \_ make sure they pay cash.
          \_ up front.
            \_ and ask for 2 forms of ID
        \_ wait till market gets better?
        \_ Some startups still have plenty of cushion, but do not approach
           them with the same attitude one would do in 1999 (i.e. the infinite
           cash supply, etc.) Other than that, I still believe startup
           companies with clear business model and non-mediocre product still
           shines.
        \_ this is the best time to be working for startups. come on, what've
           you got to lose?
           \_ your stable job that you had before.
        \_ Depends if they have the right product people and processes.
           If they do, then it may be worth it (but that's the case even
           when the economy is "good")
        \_ Slightly off topic, but what recent startups have actually become
           established companies (ie, you wouldn't call 'em startups anymore
           and they actually are stable).
           \_ In this market, no startup (new or otherwise) is stable.
        \_ In a nutshell, here is what you should consider before going to
           work for a startup:
           1. How much cash do they have, and, given this, how long can
              they survive with NO FUNDING and still pay your salary.
           2. How much will they pay you?  Stock is NOT a substitute for
              salary.  That said, due to the incredibly poor market
              conditions, you should be able to get more stock because
              of it's (perceived) decreased value.
           3. Make it clear that, UNDER NO CIRCUMSTANCES, will you take
              a pay cut, or lower your salary for more stock after you
              are hired.  It is the responsibility of the management
              to budget for your salary for the forseeable future.
              If you are hired at rate x now and the company tries to
              decrease your salary to some value y < x, you are being
              cheated.
           4. You will not IPO in the next 12 months, the market is too
              bad right now, no company with sane management would even
              consider it.  More likely, you will not IPO in the next
              24 months.  Beyond that, the outlook is hazy.  Worst case
              scenario, the economy will continue to suck for the
              remainder of the Bush Reich.  Greenspan is a miracle worker,
              but improving the economy during the Bush presidency would
              probably constitute vulgar magick, and result in a paradox
              backlash.
           4.
           5. VCs are being pretty tight with money now, but they have
              a tremendous amount from the boom.  Don't be fooled into
              thinking that the recent downturn has put a remotely
              significant dent in their coffers.  In their typical,
              brain dead herd mentality, the in thing to invest in are
              companies that are stable, profitable, and show potential
              for significant long-term growth.  This is in contrast to
              the earlier herd philosophy of invest in any company on
              this internet thing and tell them to splurge money to get
              big really fast, and then figure out how the hell to turn
              a profit.
              When evaluating companies to work for, think how the
              current VC herd mentality flavor of the month will
              influence their prospects for being funded when they
              need yet.
           6. VCs are generally dumb.  They make money because VC
              investing is more or less high-stakes gambling where the
              odds are incredibly in their favor.  If you want to see
              empirical evidence of how clueless VCs are, read up on
              the debacle that is arsDigita.  Keep in mind that the VC
              firms that invested in aD are some of the top firms out
              there.  If you can join a company that can sustain itself
              so it does not need VC funding, so much the better.
              That said, the one thing that the incredible amount of
              money and clout some VC firms carry can help with is
              taking a company public.  But, as point 4 mentions,
              that's not happening any time soon.  Also, the less
              your company actually NEEDS a VC stake, the less the
              VCs can devalue your stock, and munge the operations of
              the company.
            Anyway, hope this helped.
           [ Paolo's drivel deleted. ]  Get a clue.
             \_ Hi fucknut.  Remember, I, unlike you,have the balls to sign
                my posts.  Do you think I'm going to bother to give advice
                about this topic?  What would be the point of me arguing
                with the landed gentry of the motd? - Paolo (who knows there
                are only 5 people who actually really post on this forum)
           \_ What do you mean by stable? Stable like IBM or stable like
              HAND? --dim
           \_ Riverstone and Juniper
2022/06/30 [General] UID:1000 Activity:popular
6/30    

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