Most of the information you can find about recruitment is for employers, not employees. I feel as guilty as everyone else because I wrote the art of recruitment 1 and 2.
Let's put it another way. Before jumping to the "infinitely far away" place mentioned by Buzz Lightyear (the character in Toy Story), let's discuss what questions an excellent candidate should ask a private startup supported by venture capital. Note: first of all, there must be a clear order: first get the job opportunity, then ask these questions!
1. How many shares have been issued?
Most companies give employees an amazing number of stock options. After all,100,000 shares sounds like a really big number-especially if the company goes public at, say, $20 a share and then soars to $400 a share, as you are sure. That's 40 million-you can buy a house in Larry Ellision with that money!
But the number of pre-emptive shares offered to you is meaningless unless you know the total number of shares issued. With these two pieces of information, you can calculate the percentage of your stock in the whole company-this is the key. For example, 6,543,800 shares out of a total of 6,543,800 shares are much better than 250,000 shares out of a total of 6,543,800 shares.
You can also simply ask what proportion you will get, but that would be a bit reckless. Many people will misunderstand this behavior because of the lack of correct judgment. However, remember that you need to know what percentage of the company you get, and don't drive yourself crazy with the idea of how much you are worth.
The following are some "joke" standards of a startup company that has raised 1 10,000 to 3 million venture capital and has no more than 15 employees. Don't simply want to earn the top level in this range, because you have to consider many variables including salary, bonus, geographical location and, most importantly, your recognized value.
Senior engineer: 0.3%-0.7%
Intermediate engineer: 0.2%-0.4%
. Product Manager: 0.2%-0.3%
Designers, such as "men (women)", are only individual contributors: 1%- 1.5%.
. Vice President: 1.5%-3%
. . CEO, for example, introduced "mature managers" to replace the founder: 5%- 10%.
I know I will regret providing these guidelines ... those who subscribe to this blog through RSS will laugh at the changes in these data. )
One more thing about these percentages: when the company becomes successful and grows-perhaps more funds will be raised to promote growth-your percentage will drop. But in any case, holding a small number of shares in a big company is better than holding a large number of shares in a small company.
2. How much does it cost per month?
"Burning rate" is generally understood as net cash flow. In most cases, "net" doesn't even need to be mentioned because there is no tax. The answer you want to this question should be cash-not some form of bullshit paper profit, unless you can pay the rent with paper profit.
How much cash is there in the bank?
This is a straightforward question. Now find the answer and divide it by.
"burning rate" This will tell you how many months the company can last before it runs out of funds. Be careful if the answer is less than six months, unless the company has signed the next round of financing contract. If not, it is estimated that it will take at least 6 months to complete a new round of financing.
4. When can the company achieve positive cash flow?
You have to ask this question, because you may be told that you have enough cash to last for several months, or that another round of financing is "going well". If the answer is enough years, then the employment contract you signed may face higher risks, because venture capitalists are not the most patient and loyal people. It doesn't matter if the risk is higher-it takes several years to set up a big company-but you should know what you are involved in.
5. When will the product go on the market?
This is another way to ask about positive cash flow. Obviously, it is impossible to achieve positive cash flow before listing, but if the company says that it can achieve positive cash flow soon after listing, it is a bit suspicious, or it shows the incompetence of management. My suggestion is that you should add six months to the "worst case" because no one has ever listed on time.
6. Can I talk to any outside investors at the board meeting?
If the attitude of external investors towards the company is as positive as you are told (and assuming that you are indeed a superstar applying for a middle-level position), then the company should agree. If not, then either the investor is "tired" or you are not that important. In fact, if you are a superstar, you don't need to ask at all, because the management will naturally ask a famous director to call you by your name.
7. Can I talk to some product testers?
This question is another kind of authenticity check: the company is probably making up a story about how much product testers like this product. In my work, every company always tells me that product testers "love products". If you are told that you can't contact them, then either the company doesn't want to cause trouble to future customers (reasonable) or you are not important enough (very likely). Of course, it may be that the product is too bad, so the company is afraid that you will talk to the product tester. If it is the last reason, then you'd better know it earlier.
8. How big is the investor's "priority of distribution of surplus property" before ordinary shareholders get any benefits?
If the company raises $25 million, the priority of remaining property distribution will be only $25 million (or several times of $25 million, depending on how investors negotiate investment terms). This means that investors have recovered their $25 million before employees get any benefits. If all they ask the company is, or even less than $25 million, then employees will get nothing. If there is a lot of priority in the distribution of the remaining property, your preferred stock may never be valuable.
9. Are there any intellectual property disputes or pending cases?
This is a standard question. To put it mildly, it is always good to know that the company's intellectual property rights are free and clear, and there will be no lawsuits to ruin the company. If you don't ask, don't expect the company to automatically provide such information during the recruitment process.
Finally, a word of caution: management will regard these problems as evidence of lack of "trust" or failure to understand the "overall situation". It is worth repeating: ask these questions after you get a job. On the other hand, you will leave the impression that you are familiar with the real operation of start-ups and financing. Welcome to the complex and contradictory world of start-ups. ...