WhoBuilt

Choosing a Startup to Work At

Feb 8, 2021· 5 min· 11K views·Watch on YouTube

Speaker

Harj Taggar, a partner at Y Combinator, explains how to choose a startup to work at.

Decide whether startup life fits

Taggar says startup work can mean lower pay and more work than staying at a stable company. If that tradeoff is unappealing, he recommends staying where you are or joining a larger company, including for recent graduates.

Assess growth over time

Taggar suggests evaluating a startup as an investor would, since employees invest their time and energy. Ask about users, the metric the company tracks, and how it has changed. Growth matters more than the current total: $10,000 in monthly revenue rising from $5,000 may be more promising than $1 million that has stayed flat for a year.

Look for exceptional founders

Taggar advises judging founders and their early hires by how impressive they are, rather than by traditional credentials such as elite schools or famous employers. Consider what they have achieved relative to their circumstances and peers. He contrasts a 19-year-old from Milwaukee who raised a seed round and built a company with an experienced Google engineer at a similar stage.

Find users who love the product

Taggar warns against dismissing a startup because its market seems small. Airbnb was rejected by investors who doubted that people would want to sleep in strangers' homes. Instead, ask to speak with early users and look for a small group whose enthusiasm for the product runs deep.

Use three signals to decide

Taggar closes by naming three factors for choosing a startup: the founders, the strength of users' enthusiasm for the product, and evidence of growth.

Takeaways

  • Choose startup work only if the tradeoff of more work and lower pay fits your priorities.
  • Ask which metric the startup tracks and how it has grown over time.
  • Assess founders by what they have achieved relative to their starting point, not their credentials.
  • Talk with early users to learn how strongly they value the product.
  • Weigh founders, user enthusiasm, and growth when comparing startups.

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