What are the benefits of working for a start-up?

For many, joining a start-up can feel daunting due to the inexperience a company may have to external factors, e.g. the damaging effects of the economy. Although many start-ups can have a limited runway from certain factors such as a lack of investment, they can also provide invaluable experience that is only gained from working in a fast-paced, dynamic, and opportunistic environment.

The key question of this article is, ‘What are the benefits of working for a start-up’, whereby using the comments and knowledge of experts, I hope to help candidates become less sceptical about joining a start-up. This seems especially important during the current economy crisis.

I have structured the answers for the article top using four underlying questions:

• Benefits to progression?
• Benefits to value for the candidate?
• How can it enhance their skillset?
• What advice would you give to those who may consider moving to a start-up, but are fearful of the current economy?

Collectively, I hope that these comments by experts provide an in-depth answer to the main topic of this article.

Listed below are the answers from experts who gratefully contributed to my article:

Domantas Jackunas – Head of Engineering at msk.ai

Benefits to progression?

“Within start-ups, there are fewer walls. Because of it, it is a lot easier to work across, or with, various functions. Such environment accelerates and expands how much you can learn and take ownership. It might not force you to learn the most profound intricacies of the development language you were hired for, but it will get you to understand the complete picture — width versus depth. This is essential groundwork for any senior or technology leader to be able to communicate outside of the technology function.”

Benefits to value for the candidate?

“UK government tax schemes for start-ups incentivise to give share options as part of the employee benefits package. If the company succeeds, this can become a sizeable bonus depending on how early you join.”

“In terms of personal values, you may experience greater autonomy and ownership. Teams are smaller, so your opinion will have a greater weight.”

How can it enhance their skillset?

“Large organisations are more likely to be bogged down by their legacy decisions, thus more likely using also older technology stacks. Whereas start-ups are more likely to embrace modern technology that helps them become nimble and agile. This will also help employees keep up to date, complementing their career progression.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

“At the end of the day, companies must remain competitive. You may earn more at a larger company. However, the difference in salary at a start-up may not be that big, especially if you consider equity. Additionally, there have been many more layoffs in larger companies, which is less of a concern within smaller companies as they have more concern for employees. Because of this, as long as the start-up you want to join has a longer history, it might be the less risky option.”

Alastair Andrew – Co-Founder & Principal Engineer at Dayshape

Benefits to progression?

“Start-ups typically lack much hierarchical structure (especially in the early days), so motivated candidates can define their own progression by taking ownership of new responsibilities. To a large extent you can define your own career ladder. If you see something that needs doing, generally people will be happy to let you have a crack at it”

Benefits to value for the candidate?

“It’s quite common to get some form of equity (or options) in a start-up. As the firm grows in value, so should the value of that stake (usually much faster than wages). Joining a start-up means trading the perceived stability of an established firm for somewhere you can help define the culture and processes. You can have a much larger impact on the company's success. Being part of something that’s growing rapidly is exhilarating and lets you gain an abundance of real-world experience in a relatively short time span. Even if the worst occurs and the start-up doesn’t succeed, that lived experience is hugely valuable to firms (or even your own chances of starting something successful yourself)”

How can it enhance their skillset?

“Start-ups are generally trying to get to Product-Market fit as quickly as possible. From a tech skillset?perspective,?this means they’ll use either a proven tech stack or something that the founders / early employees are confident with. Their focus always needs to be delivering value so don’t join a start-up thinking it’ll necessarily give you an exposure to a wide variety of technologies. What you will gain is exposure to the application of a tech stack and all the soft skills needed. You can liaise with customers, capture requirements, design / implement solutions, release software, get feedback and iterate. In larger firms, those'll be dedicated roles and functions where you'll play a smaller role. In a small firm you'll gain experience of doing aspects of them all.”

How can it enhance their skillset?

“Start-ups may not be able to adjust their core tech stacks, so there must be a laser focus on what tech you wish to use for your future career. For example, a piece of software must be solved from someone who has experience with the tech so that they can make the right changes. If you are inexperienced with the tech used by the company then this will prove problematic for both you, and the start-up.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

"Is there ever the perfect moment for doing anything? All companies are affected by the wider economic winds but if the start-up is solving a real problem and currently gaining traction with customers then that’s as good a sign as any. Larger established firms are laying off tech roles so there’s not necessarily any more stability with them. Ultimately when joining a start-up you need to ask yourself whether they’ve communicated a clear vision of why they’ll be successful in the market. If they can’t convince potential employees, then they’ll also struggle to convince customers and investors.”

John Hulley – Data Team Lead at Evotix

Benefits to progression?

“In terms of progression, I would say that it is much easier to progress within a start-up. This suggestion is enforced from the increased ability to make your mark in the company by solving business problems.”

Benefits to value for the candidate?

“Start-ups offer more flexibility for core working hours where you have the option to accommodate more time on projects and develop your skills. They may also pay more than larger companies for the right individual.”

How can it enhance their skillset?

“Smaller companies offer more exposure to different/newer technologies. This provides you with the ability to experiment with technologies, give you cloud exposure and enhance your tech stack.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

“Don’t be scared, many start-ups have a long-running time where you will gain a lot of useful experience.”

Morné van Dalen – VP of Engineering at PerchPeek

Benefits to progression?

“There are greater opportunities for new successes. Although there is a chance of failure, there is a greater chance to progress quickly. Start-Ups also allow you to work better in different environments, and benefit people who thrive in a fast-paced environment. This can help build up experience quickly.”

Benefits to value for the candidates?

“By joining a start-up, you may have a much better chance of a higher proportion of the equity, which allows you to be rewarded for investing in the future of the company.”

How can it enhance their skillset?

“It depends on the product and area, however, typically, you are at the beginning of the journey, where there is a higher chance to explore new technology and generate passion towards the new tech learnt.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

“Do your homework. Look at the product and where it stands in the market, is it unique or different? Make sure that you focus on the USP of the company.”

Lloyd Moore – Strategic Advisor at Blockdaemon

Benefits to progression?

“By Joining a start-up, you will quickly gain useful experience to enhance your progression, whereas it may take 5x times longer to gain the experience needed to progress at larger companies.”

Benefits to value for the candidate?

“Start-ups may provide access to greater equity of the company. You may also be exposed to responsibilities that allow you to build expertise on tech that may not be used in corporate level companies.”

How can it enhance their skillset?

“In the start-up tech space, you get to use the latest and greatest technology, with hopefully no outdated tech. I’ve experienced this as well in my current role at a start-up where I’m able to use a different tech stack that I would not have been able to do at a much larger company.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

“You’ve got to think about the right company for you in this stage of your career, using this as a gateway to experience new ideas and practices that will benefit you long term in the future.”

Will Daubney – Tech & Data Lead at Dama Health

Benefits to progression?

“Typically, you can progress quicker, with more opportunities for growth in a high-growth company. You don’t have to wait until someone leaves to be promoted, and can follow the company's growth trajectory.”

Benefits to value for the candidate?

“The greatest value to candidates is the experience of working closely with senior and motivated people in a fast-paced environment. You are also given the ability to be rewarded with stock options which have a big upside if the company is successful.”

How can it enhance their skillset?

“In the start-up tech space, you get to use the latest and greatest technology, with hopefully no outdated tech, and only focusing on good the for the future tech. I’ve experienced this as well in my current role at a start-up where I’m trying out different tech that I may not have been able to do at a much larger company.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

“You can focus on start-ups with recent?significant?investment as that’s a good sign of growth in?the medium term, where lots of investment may continue to progress the company. There is a potential upside in terms of early-stage start-ups, being born in this market, they are already preparing for the economic downturn and have already factored that in when deciding to hire so they may be more sheltered than other industries. However, you should do your research to make sure that they are well-invested, have a good runway, and have a great strategy for growth. This should help limit the overall risk of joining a start-up.”

Shaine Ismail – Co-Founder & CTO at bigspark

Benefits to progression?

“Depending on experience, it’s all about being open to a range of tasks and trying out new things. This can be project management, business analysis, code, and so on. Joining a start-up is most suitable for people looking to strengthen their ability to complete a range of tasks, sustained to a high quality.”

Benefits to value for the candidate?

“Joining an early-stage company may distribute nontangible benefits such as working with the clients closely, which helps to understand what is being developed. You may also be given flexibility on using software, which allows for more creativity.”

“In terms of monetary values, there is potential for a large end payoff through shares and equity.”

How can it enhance their skillset?

“Engineers may get the opportunity to help guide the tech decisions and build them. Start-ups will therefore help drive your skillset to meet the customer demands.”

What advice would you give to those fearful of the economy at the moment about moving to a start up?

“Do your research, understand the founders’ plans, and only work with people that you can get on with. It is easy to leave start-ups if it doesn’t work out as there is a big market for hiring, however, you must put yourself first and make sure you are happy within your role and company.”

From speaking with each of these experts and getting detailed answers, I have been able to structure common themes to each of the four underlying questions to the topic.

Key Themes

Benefits to progression?

Increases the likelihood of a faster progression on the career ladder as opposed to a slow rate which you may find at a larger company.

Allows you the opportunity to try your hand at a range of tasks, enriching your skill set and experience, which will benefit your career.

Benefits to value for the candidate?

Obtaining shares in the company at an early stage, which will increase in value as the company grows.

You can be more involved in the early-stage decisions of the company and have more of a say in the development which can be highly rewarding.

How can it enhance their skillset?

Opportunities to try out new and exciting tech that may not be available to engineers at larger companies.

The ability to try out different areas of engineering that will help identify your future career path.

What advice would you give to those fearful of the economy at the moment about moving to a start up?

Do your research about the company before joining and make sure that it is the right decision. This will help limit the risk of joining a company that may fail in the near future.

All companies are affected by the economic crisis, don’t let this be a barrier to joining a great start-up.

After reading this article, I hope that candidates will be more open minded to joining start-ups as they can truly provide exceptional benefits, such as accelerated career progression and invaluable experience. Factors such as the economy should therefore not stop you from being joining a company that may turn out to be the best career decision you make. As shown from the comments of experts, sometimes it’s appropriate to take a leap of faith.

I would also like to say a huge thank you to each individual expert who contributed to my article and provided their fundamental insights:

Domantas Jackūnas – Head of Engineering at myrecovery.ai

Alastair Andrew – Co-Founder & Principal Engineer at Dayshape

John Dean Hulley – Data Team Lead at Evotix

Morné van Dalen – VP of Engineering at PerchPeek

Lloyd Moore – VP of Engineering at Blockdaemon

Will Daubney – Tech & Data Lead at Dama Health

Shaine Ismail – Co-Founder & CTO at bigspark

I hope that you have enjoyed reading this article and find it of use for the future, thank you!