Is this a good time to work at a startup?
My non-US citizen friend who works for big tech in SF is contemplating joining a late stage startup in the next month or so (in SF). Given the current macro-economic climate, he's a little hesitant on whether this is a good time to join a startup (Especially with the news of all the layoffs). Would appreciate any advice for him regarding whether it's a good time to join a late stage startup and what signals to look for!
My last-but-one start-up found it easier to raise funds and get attention in a downturn than otherwise, because there were fewer others competing for attention. Don't assume that doing something different is necessarily harder when mainstream is finding things hard.
It all comes down to how much money the start up has. Can it survive the next 2 to 3 years with out having to seek more funding? The next few years will see a big reduction in available funds so it's going to be hard for companies to get new funding.
Startups are always hard to measure and anything can happen. If he joins, he should build a six month emergency fund just in case things fall apart.
It's all about the runway. If they have raised enough money recently, say, series A or B, and have a solid plan, why not.
Nowadays, startups either grow or die. With enough money in the bank, you are looking at maybe 18 months of work.
It's worth checking if the startup is well funded (making enough revenue or closed a round recently). In the current climate, late stage is being hit the hardest due to access to capital.
It depends on the startup. If it hasn't been going through a period of hyper-growth and has a solid business plan that can withstand an economic downturn, potentially.