Should You Quit Your Job At A Unicorn? | Summary and Q&A

YouTube video player
Should You Quit Your Job At A Unicorn?

TL;DR

This video discusses signs that indicate it may be time to leave a failing unicorn startup and offers advice for employees considering their options.

Install to Summarize YouTube Videos and Get Transcripts

Key Insights

  • 🦄 Not all 1,400 unicorns will go public successfully, so it's important to assess the signs and hints that indicate whether a unicorn startup is failing or not.
  • 💰 Late-stage unicorn employees should be wary of the strike price of their options and the potential for underwater options if the company is sold for less or overvalued.
  • 🔄 In the event of an acquisition, employees may have to reapply for their job and could end up at a big tech company they were trying to escape from.
  • 📈 Employees should focus on revenue and determine if the company has reached product-market fit and if users are engaging with the product.
  • 💡 Employees have access to information that can gauge a company's success, such as product analytics and customer engagement data.
  • 💼 Considerations for employees include seeking more responsibility at an early-stage company, reassessing equity valuations, and comparing company performance to make a smart decision.
  • 🕰️ Market timing can play a role in an employee's decision to leave a late-stage unicorn for an early-stage company with potential for advancement and better equity valuation.
  • 🧠 Job hopping is not beneficial for building a successful career or expertise, so employees should carefully analyze their current company's metrics, founder dedication, and colleague performance to make an informed decision.

Transcript

as far as you can tell the metrics are excellent yes the founders are extremely focused yes your colleagues are very smart and you are very impressed continuing to work with them yes you should probably stay a really long time yeah I mean like that's that's kind of what Google looked like what Facebook looked like welcome to Dalton and Michael toda... Read More

Questions & Answers

Q: How can employees determine if their unicorn startup is experiencing financial difficulties?

Employees can assess their company's financial health by looking at revenue growth, user satisfaction, product market fit, and the engagement level of senior management. It is important to gather and analyze information to make an informed decision.

Q: What are the risks associated with staying in a unicorn startup that is not performing well?

One risk is having underwater options, which means that the strike price of employees' stock options is higher than the company's valuation. In the event of an acquisition, employees may also face job insecurity. Moreover, one might end up at a big tech company they were trying to avoid by joining a startup.

Q: How can employees assess the long-term viability of their startup?

Employees should consider factors like revenue growth, user satisfaction, product-market fit, and the overall competence and engagement of the management team. By analyzing available data and making their own judgments, employees can determine if the company is on a promising path or if it's time to consider other options.

Q: Is it a good idea to switch from a late-stage unicorn to an early-stage startup?

Switching from a late-stage unicorn to an early-stage startup can be a smart move if the early-stage company shows better growth prospects, offers more responsibility, and provides a better equity package. However, employees should carefully evaluate the potential of the early-stage startup before making a decision.

Q: How can employees make an informed decision about leaving their failing startup?

Employees should gather all available information about their startup's financial health, product-market fit, and management competence. They should not solely rely on external signals like fundraising rounds or media coverage. By considering the specific circumstances of their startup, employees can make a well-informed decision about staying or leaving.

Summary & Key Takeaways

  • With over 1,400 unicorns currently, the odds are slim that all of them will be successful, making it important to analyze the signs of a failing company.

  • Late-stage employees may face problems with underwater options and potential job loss if the company is acquired.

  • Revenue, user satisfaction, product market fit, and management engagement are key factors to consider when deciding whether to stay or leave a failing startup.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from Y Combinator 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: