Should anyone with high-tech ambitions work for a startup early in their careers?
Some experts think so.
“The best school of entrepreneurship is working at a successful startup,” says TravelPerk CEO Avi Meir.
“Startup roles offer a wider, more impactful range of experiences and opportunities for professionals willing to work hard,” adds Target Global’s Yaron Valler.
Valler and Meir could have a point. Or several. Famously, many of the world’s top tech leaders — including the late Steve Jobs, Microsoft cofounder Bill Gates, and current Meta CEO Mark Zuckerberg — dropped out of university to pursue their business goals. Many others, however, made it through university before getting started on what in hindsight turned out to be their real education: working at a fast-paced startup (or several).
Here’s why leaders like Valler and Meir, not to mention tech titans like Zuckerberg and Gates, tell young professionals to embrace the startup life.
Experience in a High-Stakes Environment That Tolerates Failure
About 75% of venture-backed startups fail, according to the Harvard Law School Forum on Corporate Governance. The upshot is that the startup ecosystem is, by and large, remarkably tolerant of failure despite its famously hard-charging culture. As a junior employee, your startup experience will most likely expose you both to the most demanding, competitive professional environment you’ve known to date while also allowing you a “mulligan” (or several) should your employer fall on hard times.
Fast Pace, Faster Learning
If you can adjust to the fast pace of the typical startup, you’ll be rewarded with practical education far beyond anything you’ve experienced to date. They call it a “crash course” for a reason; not everyone comes out unscathed, but those who do, emerge stronger and more capable.
Multiple Touches on the Ball
Working for a startup for a few years early in your career provides an unmatched opportunity to sample a range of different roles and projects. It’s a chance to explore (and build) different skill sets — and to stand out in the talent marketplace.
“Managing multiple roles can be fulfilling and can increase performance by expanding your skill sets and social support network,” says Helen Tuddenham, an executive coach.
At the same time, Tuddenham warns, juggling multiple distinct roles can lead to higher levels of stress, social friction, and ultimately burnout on the job.
But compared with a traditional corporate environment, balance may be easier to achieve in a startup environment, where the fast pace and cross-pressures are balanced out by a shared mission and a cooperative culture where senior leaders mentor and engage more junior employees.
A Professional Network for the Future
The average worker’s professional network has shrunk by 16% in recent years, a consequence of the shift to remote work and a decline in “traditional” startup activity. However, early-career startup employees still find it easier to build dynamic professional networks than peers at larger companies, where expertise tends to be siloed and fewer opportunities exist to rub shoulders with senior leaders. The benefits really become clear in the second and third decades of one’s career, as professional contacts rise into positions of greater authority.
Money in the Bank — If All Goes Well
Most startups do fail, as noted. But if you can survive for a few years at a startup and the company remains in good health when you leave, you could be in for a generous payday.
That’s because most startup engagements involve considerable equity compensation. The standard vesting period is about four years, with a one-year “cliff” — that is, you get nothing if you leave the company within a year of your start date and everything if you last four years or longer. If and when the company goes public, you’re in the money and then some.
The Best Education You Can Get?
Education experts are largely aligned on the value of a well-rounded education. Proponents of liberal arts colleges and universities, like those at the Coalition for College Access, argue that “broad knowledge of the wider world will prepare you to deal with complexity, diversity, and change.” They note, further, that 93% of employers “agree that candidates’ demonstrated capacity to think critically, communicate clearly, and solve complex problems is more important than their undergraduate major.”
That’s an argument for staying in school, getting a degree, and then launching or joining a startup. However, it’s also an acknowledgment that education doesn’t end when you walk across the graduation stage. Your most fruitful years as a student might well come after that, as you work tirelessly to build something amazing.
