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Lucas Wiman's avatar

I worked at two early stage startups at my first two jobs. That was a very bad financial decision on my part. The benefits were bad (e.g. no 401k); the pay was low. I didn't know what I was doing in terms of negotiating salary or how to value options. Even 11 years later, my net worth is maybe 40% lower than it would be if I'd gone to Google when I had the chance.

There are multiple levels of opportunity cost, and the ability to build a financial cushion and retirement savings is very important early in your career. The points about gaining valuable experience can be valid, but they make more sense if you have some personal or familial "cushion" to fall back on. Fresh out of school, if you're coming from a poor family and/or have significant student loans, you're not in a good position to take advantage of those learning opportunities. College was your learning opportunity, and it's time to cash in on it. Maybe an early stage startup makes sense as a second or third job for you. The money in your 401(k) from your boring job at some random bigco will continue to grow while you're working at Unicorn Rocketship, Inc., and you'll be in a much better position when you discover that your startup equity was literally worthless.

I agree with the other commenters that Series C companies may be a good option compared to early stage companies. They still have some "startup" vibes while also offering somewhat competitive benefits packages. Their stock is also less likely to be totally worthless, though it won't make you super rich either. My third job was at a series C company, and the exit after 6 years of working there paid for the down payment on my house. (That said, competitive salaries at series C companies may have been a zero interest rate phenomenon. I'm not sure what the current job market is like in that regard.)

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Building Hardware's avatar

I think if the goal is financial then it'll lead to burn out and potential disappointment. However if it's to learn and hone one's skill as a PM/engineer/designer than startups are a must at least once in a career. I find this to be especially true in the physical product space where one needs to see the effort required to fabricate and test something tangible.

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