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Ask HN: Accepted job offer, then investor offered funding, what to do?

3 points by lettergram ↗ HN
Posting for a friend (who doesn't use HN). We are debating this, and I don't want to give bad advice...

He is about to graduate from a university, and they have worked three years solo on a startup. As it is their senior year, they accepted a job offer at the last possible day, received the sign on bonus (but didn't spend it), and start in 4 months.

Then, the same day they received their sign on bonus, they get an offer from an investor that was pitched to several months prior. They're offering a few hundred thousand dollars, the money they needed to finish the product (and then some).

The startup is really where they want to go, but the company is a big name company, has been really good to them, and they feel torn about what to do.

I am concerned that if my friend returns the sign on bonus, and takes the investors money that will tarnish their reputation/career.

Will that big company forever put him on a blacklist, perhaps shared between companies?

Is this a valid fear?

How would you handle it?

7 comments

[ 16.3 ms ] story [ 303 ms ] thread
msie
Go for the startup! When you're young you have the luxury of taking risks.
andrewstuart
"Tarnish their career"?

Your friend doesn't need to list "reneged on job offer" on their resume. No-one will even know, nor care whether or not they got a better offer after accepting a different job offer.

How do you see it might tarnish their career?

The startup will likely fail but there's more experience and fun to be had in the startup.

msellout
First, find out from the investor how much of the money he can take as salary. That can make a big difference.

Second, realize there's no global "blacklist", just people, friends, and long memories. It can be a small world sometimes.

tannk11001
It's very likely that neither the job nor the startup will have amounted to much in 10 years, but they'll each have contributed different experiences. So it's ultimately up to your friend and whether they've got more interest in earning a years or three of startup experience, or more interest in learning in a more structured way as a recent-grad hire at the employer.

On the downside risk -- there's no blacklist. They might not see another offer from the hiring company, and if it's a small industry or city, they might have some unexpected doors closed on them. On the other hand, it's also possible that the hiring manager will be very sympathetic to a recent grad that's run into a tough situation and might even encourage him to go on his way.

brudgers
Has the investor signed documents binding them to provide the funds? If not then it's still just talking about investing.
sharemywin
If they got money from the company they probably signed something. Probably no big deal, but might want to talk to a lawyer. Especially, if the job is directly related to what the start up is doing.
loumf
Assuming this is the US, you are an at-will employee, and if the company you work for wanted to end your employment, they could, for any reason whatsoever. If they had a unforeseen circumstance -- they would do it.

You should adopt the same stance. Take the best opportunity.