Re: If I can pick and choose any start-up to work for, I’ll pick … Part 2

Ted Howard — Fri, 10 Oct 2008 13:29:21 -0000

I commented on the last entry in this series explaining that it would be best to perform full, strong due diligence on a startup that you might join. I also mentioned that potential employees will never have access to as much information as a potential VC will have. This post touches on a few important pieces of information available to you to perform due diligence.

As a startup gets more serious in courting you as an employee, for instance when you get an offer, start asking more questions. How much money do they have in the bank and what's their burn rate? (especially important in this macroeconomic climate) What was their last funding round, pre-/post-value? (that should tell you founders' dilution and ownership in a general sense) etc.

A VC invests their limited partner's money, their own reputation, and their own time and wisdom (esp. if they're on the board). You will be investing your reputation, time, and wisdom. In both cases, their will be other potential startups where the VC or yourself could put those resources to work. So, one way to view the key question of this blog post is to choose your startup like a VC chooses its investments.

GeekMBA360: Beat Recession. Grow Career. Build Wealth. - Latest Comments in If I can pick and choose any start-up to work for, I’ll pick … Part 2

Re: If I can pick and choose any start-up to work for, I’ll pick … Part 2