Tag Archives: groupon

Why Engineers Do Better in Startups

 

Credit: Flickr Creative Commons, Dierken

Credit: Flickr Creative Commons, Dierken

I agree with a lot of Bindu’s article, Why Engineers Are Better off Joining Startups. I started a fairly successful Web 1.0 company in the 1990’s. At that time we had to hand roll even the most basic infrastructure to get the service up and running. Waterfall development was the rule. It was necessary to raise a lot more money because even basic services like Paychex, outsourced HR, Hosting, etc… were not available across a spectrum of what a functional company needs.

We still had a very successful exit as investors/employees received a 27x’s money return.

I recently came back and decided to do WellnessFX, funded in 2010. It has been nothing short of mind boggling to see the breadth of technology and business services available. What’s more, the variety of venture funds available that actually service early stage and seed companies is equally mind blowing. The talent pools are diverse and incredibly smart. Also, because there are so many services and outsourced resources available, it isn’t necessary to have a huge employment base. This means less dilution to the company equity structure. This is hugely in favor of investors and employees.

While the pay and job security are perceived as being superior with a large existing company like a Google, Facebook, or even Groupon, in reality there are several downsides: (keep reading >>)

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