Why being an employee in a start-up is not as great as you might think

Dan Lyons held a remarkable speech about the “new tech start-up bubble” at the Open Source Leadership Summit in February 2017.

Having worked in or with several start-ups over the last years, I https://buycbdproducts.com significant truth in Dan’s words.

His main argument is that although start-ups are perceived as “fun to work at” and as dream employers for young talents nowadays, they actually make their employees miserable!


  • employees give up savings for retirement
  • employees have no work-life balance
  • employees get no fair share of equity
  • female employees have no chance to have kids and return to work or even get promoted

According to Dan’s presentation, VC’s are the root cause of this. Only their monetary success counts (grow fast > lose money > go public > cash out), neglecting the needs of the employees of the start-ups they are invested in.

The following chart illustrates this nicely:

Also remarkably, only 10 out of 60 tech IPOs since 2011 even make a profit!

So in case you consider working for a start-up for a low salary, you might want to rethink your decision. It can be ok at the beginning of your career to learn a lot, but at some point you should not accept that anymore. As long as you have no shares in the start-up, you should be aware that you do not profit in any way. The VC takes it (the profit) all!

Do you work in a start-up? Do you agree or have you made different experiences? Let me know in the comments section.

Author: Stefan Richter

Digital Product Innovator and Expert.
Stefan is a passionate creator of new digital business models and platforms.

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