Thinking like a VC when evaluating a startup role
I came across an interesting article by Irina Stanescu and Oana Olteanu on The Caring Techie that presents a valuable perspective on choosing a new job, particularly within the startup world. Their central idea is that joining a startup is a significant personal investment, and as such, it should be approached with the same level of scrutiny a venture capitalist (VC) would apply to a financial investment.
But joining a startup is a bet. You’re not writing a check. Instead, you’re putting in something harder to get back: your time, focus, energy, and reputation. Once those are spent, there’s no refund.
The authors propose a framework based on five key questions to guide this due diligence process.
A VC-inspired checklist for job seekers
The article breaks down the evaluation into five core areas:
- Is this a market worth betting on? Before looking at the product or team, assess the market itself. Is it large and growing, or small and stagnant? A strong market can support even an average product, but a brilliant team will struggle in a declining market.
- Can this team actually win? Evaluate the founders and early hires. Do they have complementary skills, domain expertise (founder-market fit), and a track record of shipping products? The team’s ability to execute is critical.
- Is there a business behind the product? A cool product is not a business. The authors advise looking for evidence of a clear business model, customer demand (are people paying or willing to pay?), and a path to sustainable revenue. Is it a “painkiller” solving a real problem, or just a “vitamin”?
- What’s the actual deal you’re getting? This involves understanding the financial offer beyond the base salary. What is the company’s valuation, and what percentage of equity are you being offered? Understanding the potential financial outcome is key to evaluating the risk-reward trade-off.
- Is this the right move for you? Finally, the decision must align with your personal and career goals. Does the company’s stage match your risk tolerance? Will the role help you grow the skills you want to develop?
A European perspective
While the article has a distinct Silicon Valley feel, particularly regarding the emphasis on stock options, its core principles are universally applicable. In many parts of Europe, significant equity grants for non-founding employees are less common or have different tax implications, which can change the calculation for the fourth question.
However, the fundamental premise—that you are investing your most valuable, non-refundable asset: your time—remains entirely valid. The framework forces a structured, objective analysis that moves beyond the initial excitement of a polished website or an enthusiastic recruiter.
By asking these questions, you can build a more complete picture of the opportunity and make a decision based on conviction rather than just a gut feeling. The full article provides much more detail and is a recommended read for anyone considering a role at a startup.
Read the original article here: thecaringtechie.com.
