Is joining a Start-Up still a good move?
Most businesses have been negatively impacted in the current climate, with start-ups struggling immensely. With profitability not seen by most start-ups until maybe a few years in, cash has always been King, however the current climate has totally dried up cash with the need to make some drastic decisions such as lay-off workers, change in direction of product or business model, seek a bridge loan from their current investors or close down their operations totally.
Across both power houses, New York and London, we were seeing record levels of investment and new tech start-ups were appearing across the board. Before COVID-19, everyone wanted to work for a start-up, with the offering of a broad role, potentially lucrative equity, a fast-paced environment and a great culture. So will that ever return and should you be put off applying to work for a start-up now, with potentially a large percentage having a short runway?
‘ We have seen a number of resumes of candidates that have built up a career working for start-ups, or a number that have entered the start-up world having previously worked at a blue chip, not wanting to return to a corporate because of the exposure, reward and satisfaction gained.’
Start-up vs Blue chip
In our recent podcast with Mars Shah, a tech entrepreneur, we asked him this precise question, as to whether individuals now should seek a safe-haven and work for a more established firm. He said, that working for a start-up was like no other experience and he wished he’d told his younger self to work for one straight out of college vs joining a corporate, which he did for a few years. We have seen a number of resumes of candidates that have built up a career working for start-ups, or a number that have entered the start-up world having previously worked at a blue chip, not wanting to return to a corporate because of the exposure, reward and satisfaction gained.
‘ In my eyes, tech start-ups have even more of a strong case now than ever before to showboat their products, because people are realising the fact that technology is integral to so many walks of life.’
The future of Tech Start-ups and Turnaround situations
As a graduate or even as a seasoned campaigner, a start-up environment provides an opportunity to really be counted and to have an impact. Even in these times, if you join a business that is struggling, this is the type of experience that will rapidly accelerate your learning curve, as you become a true value add employee in working on a turnaround situation, with the ability to collaborate and learn about all parts of the business.
In my eyes, tech start-ups have even more of a strong case now than ever before to showboat their products, because people are realising the fact that technology is integral to so many walks of life. Every part of our life in recent weeks has led us to shifting to adapt to some form of tech, whether that’s health care with telemedicine, workouts via online virtual sessions, work, with more increased use of Zoom or even eating, whereby companies like Mindful Chef are creating recipes via AI to deliver to customers on a weekly basis. So there is optimism in this space, furthermore the importance of this start-up ecosystem to both the US and UK is undoubtedly massive, with a rally from all corners to help now and protect future growth.
Go for it!
My opinion remains, even given the uncertainty of the start-up landscape, the opportunity of working within this environment is truly unique and inevitably will develop you at a faster rate vs a blue chip. Yes, there is a risk, but there could also be a massive upside, especially if the business has a product that can make people and businesses life’s more efficient, as we have seen. If you join a start-up now, don’t be afraid of the turnaround situation they may be in, because once you have been in the trenches and helped navigate the firm through this, that experience will stand you in great stead for future positions.
Written by Dav Masaon| Zanda Co-Founder
