Seibel says working in a new environment can reveal problems that might become startup ideas. But the day-to-day work at a large company may offer little preparation for founding one.
Working at Big Tech Companies Can Be a Trap
Speaker
Michael Seibel, CEO and partner at Y Combinator, discusses whether experience at a big tech company helps people start companies.
At a big company, an employee may own only a small part of a large machine, which can limit what they learn and how quickly. In a startup, Seibel says, the founder may be responsible for the whole team and for whether things work.
Signing bonuses and recurring stock grants can make leaving feel costly. A high salary and company services can also lead employees to spend more on housing, cars, and vacations, raising the financial pressure to stay.
Seibel suggests taking a big-company job with a specific goal, such as saving money, learning a technology, or meeting a co-founder. If someone already has a problem to solve, savings, and a co-founder, he advises getting started. He adds that a blue-chip tech résumé is not required for YC or for becoming a good tech startup founder.
Takeaways
- Treat a big-company job as a focused step with a clear goal.
- Account for lifestyle spending when deciding how much runway your salary is building.
- Consider whether your role gives you meaningful ownership and fast learning.
- If you already have a problem, savings, and a co-founder, begin building.
- A blue-chip company on your résumé is not a prerequisite for founding a tech startup.
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What was claimed 8
- role atMichael Seibel is worked at YC at
Y Combinator
“I help run the accelerator.”
0:00inHow to Plan an MVPYouTube Verified17 sources· Talk
- acquired
“Socialcam, which was sold to Autodesk”
YouTube Unverified1 source· Talk
- foundedMichael Seibel founded Socialcamco-founder
“another company called Socialcam”
YouTube Verified2 sources· Talk
- acquired
“Twitch and was sold to Amazon”
YouTube Verified3 sources· Talk
- built
“Justin.tv, which later became Twitch”
YouTube Verified3 sources· Talk
- foundedMichael Seibel founded Justin.tvco-founder
“I was co-founder of a company called Justin.tv”
YouTube Verified3 sources· Talk
- featurebig company: Compensation and services can increase spending and make employees feel uncomfortable leaving.
“they structure your compensation in such a way that at every point you feel uncomfortable leaving the company”
YouTube Unverified1 source· Talk
- feature
Y Combinator: Prior experience at a blue-chip tech company is not required for YC admission.
“It's absolutely not required to get into YC”
YouTube Unverified1 source· Talk





