Depends on if you want equity or not. If you are consultant, the absolute best time to join a startup is after they get funding. It means low risk of bounced checks. Several very bad mistakes consulting for prefunded startups leads me to this conclusion.
Exactly. The VCs would expect the startup to spend the capital on growing the business quickly, and if that means hiring consultants and paying them a top rate then so be it. In fact, the startup would get in trouble with their financiers if they didn't do it.
I am certainly no expert, but this doesn't seem surprising for three reasons.
- Significant investment means significant external validation for the company's chances of success. It also theoretically raises its chances of success. it isn't some idea that nobody would fund.
- Before investment the company is comprised of some work that has been done & some ideas. After investment, the company is more work and money. It's bigger.
- They can afford to pay salaries.
Can someone explain why this post doesn't just mean penny stocks are better the blue chips?
Exactly, because of those 3 points above the new employee also takes on significantly less risk in comparison to joining pre-Series A. It's very logical and I don't really get what the OP was trying to explain.
I just joined a startup that recently received funding (although not in the 2M range). If they hadn't received some venture capital I don't know if I would have been up for the risk, I've got a family to take care of :-) Obviously there's still risk involved, but feeling pretty confident that my paychecks are going to clear is good.
[+] [-] railsjedi|16 years ago|reply
[+] [-] flipper|16 years ago|reply
[+] [-] netsp|16 years ago|reply
- Significant investment means significant external validation for the company's chances of success. It also theoretically raises its chances of success. it isn't some idea that nobody would fund.
- Before investment the company is comprised of some work that has been done & some ideas. After investment, the company is more work and money. It's bigger.
- They can afford to pay salaries.
Can someone explain why this post doesn't just mean penny stocks are better the blue chips?
[+] [-] Frocer|16 years ago|reply
[+] [-] ulf|16 years ago|reply
priceless
[+] [-] gfodor|16 years ago|reply
[+] [-] megamark16|16 years ago|reply
[+] [-] zackattack|16 years ago|reply