Ask HN: Should I join a startup just because its backed by a famous VC?
I'm currently in "advanced discussions" with regard to joining a dot com startup. While I do not see anything new in their product, their founder told me that they've been backed by a famous VC and this information is not public yet.
Should I trust the founder and join the company, just because its backed by this renowned VC ?
Also more importantly what questions should I ask the co-founders to make sure that I'm joining the right company ?
7 comments
[ 3.0 ms ] story [ 27.5 ms ] threadAlso, don't just join a startup due to it being backed by a famous VC. If you can't get behind their product, goals, atmosphere etc then you will have a miserable time regardless.
To really get a feel for the co-founders, you need to spend some time in non-interview situations to fully understand their character and traits. Maybe try and get them to sit down for a coffee and put your concerns on the table. Good co-founders should appreciate the transparency.
I've had a couple of non interview talks with them and they sound like really good people. On the other hand, in absence of a long term growth plan which they've failed to present me with, its a bit risky on my side.
The VC investment seems like a reasonable explanation to believe that they have a long term plan. But should I trust this explanation ?
It also depends on the stage of the investment, the later stage an investment the safer it's likely to be. If it's a seed investment of 500k then it's going to be a high-risk startup, if it's a Series B of $20m then it's likely to be a safer bet.
A better question to ask in terms of growth plans is what sort of metrics does their VC need them to hit in the next 12 months for them to be willing to make a follow-on investment.
Most of all VCs invest in companies that end up going under, they are making just as much of a risk as you are in joining the company.
In terms of questions to ask: - What are your company goals and missions? - Where do you see the company in 2 years / 5 years / 10 years? - What was your motivation to start the company? (you want to understand their passions and individual goals)
At the end of the day it's your decision. Go with what you believe in.
On the other hand "not seeing anything new" in a product doesn't mean it's can't succeed; if there are other companies in that market doing pretty well it's probably a data point in favour of the startup's survival chances.
Look at the teams track record, is this their first startup? What experience do they have? How committed are they? What do they require from you? Do they have a clear way to acquire customers? Are you dealing with a chicken egg problem? Do they have a clear goal to monetize their site? How long have they spent on validation? Have they found customers that would pay for their service before launching it? What's the time frame, as in, how long do they expect you to be working on this project?
I read an article, I think it might of been on Sam Altman's site, that said, you need a leader, a manager and a techie. Each having very distinctively roles to play.
Having a reputable investor is a good sign, but doesn't mean it's going to work. It all comes down to the team executing it. Focus on skill set of the team, rather than the investors big name.
Do some background checks on the Founders, if anything seems fishy, get out of there. On the other hand, if it looks like you have found an awesome team - sign yourself up.
I'm on my second startup now, it's a side project. I'm interviewing people for my team. I got hustler from Rutgers, who went out and got the sign ups for a social network, she has connections to TechStars and Y Combinator. Her previously startup, she was working with a growth hacker (which is what I do). So we are a good match. Have 5 interviews with programmers over the next two weeks, and I've found people that will help out with marketing and programming for free. I focussed on 'specific sets of skills' I want my team to have.
Best of luck!