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Working at Big Tech Companies Can Be a Trap

May 17, 2019· 4 min· 66K views·Watch on YouTube

Speaker

Michael Seibel, CEO and partner at Y Combinator, discusses whether experience at a big tech company helps people start companies.

Big company experience can expose useful problems

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.

Large teams can slow learning

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.

Compensation can make leaving harder

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.

Set a goal, or start building

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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