How to Marry a Startup

December 11, 2009

So you want to work at a startup company, but you just don’t know how to approach the task.  You don’t just want a job.  You want to marry the startup of your dreams and live happily-ever-after.

Finding a startup job and finding a spouse have many similarities.  And the approach taken to find a startup job or a spouse will depend on the individual.

What am I looking for? The girl-next-door?  Tall, dark and handsome?  Supermodel?  An athlete?  Before you even start searching for that ideal startup, it is important to understand just what it is you are trying to find.  Do you like high tech or biotech?  Something still in the garage or on its fourth round of funding?  Breakneck speed or a comfortable jog?  Define what you are targeting so that you can focus your efforts in the right places and be happy with your choice.  But remember to be open.  You might go looking for a supermodel but realize that you’re actually in love with the girl-next-door.

Be prepared. No, this does not mean a trip to the corner drugstore.  Prepare yourself mentally and physically.  When looking for a mate, you don’t just decide what you want and “get out there” to start looking.  A more effective way is to prepare yourself.  You get a haircut, get some new clothes and shoes, make friends aware you are actively “on the market” again, and formulate a strategy.  The same goes for a startup search.  Get your resume in order.  Make friends aware that you are “on the market” again, and let them know what you are looking for.  Prepare yourself to change your habits and schedule to maximize your chance of finding your startup mate.  Document your strategy and execute on it.

Where to look. You know what you’re looking for, and you are prepared and ready to rumble.  So where do you find your true love?  On the Internet?  Through friends?  The local club scene?  Your job search offers similar options: job boards, referrals, job fairs, and recruiters.  If you’re looking to marry a nice Jewish gal, you don’t go to CatholicSingles.com.  Which means you don’t go to Monster.com to find jobs at startup companies either.  Find the niche sites that have exactly what you want.  Maybe that site is right under your nose.  (insert shameless VentureLoop plug here)

Our friends can do a pretty good job of matching us up with potential mates as well, because they know us and what we like.  But sometimes they just want to get two single friends together and there’s really not a spark.  Use referrals to find job leads, but remember to do your own due diligence.

You can also find fleeting romance at a club or bar, but rarely do those result in meaningful relationships.  These are like job fairs.  A big meet market where everyone is there to check out as many people as possible, but rarely do you meet that special company for a lasting relationship.

And don’t forget recruiters.  Recruiters are really paid matchmakers for companies, not for candidates.  They can find some great targeted mates for their corporate clients, but just bear in mind that the startup pays their bills.  Recruiters do not survive by finding jobs for candidates.

The Approach. When you start to look for your mate, it’s usually not a good idea to sign up for seven different online dating sites, talk non-stop to your friends about finding the right person, go to clubs four nights a week scoping out prospects, and moping around saying no one wants to marry you.  You don’t want to do that in your startup search either.  Target your approach, and don’t make your job search your life.  Just like finding a spouse, it usually happens when you’re not trying so hard.  You expose yourself to the right opportunities, but you don’t let it dominate your life.  Getting your resume posted on ten job boards, applying to 25 jobs each week, constantly nagging friends for job leads, and complaining that you’ll never find the right job is the wrong approach.  Live your life, create opportunities to be exposed to the right kind of startup companies, and relax.

Research. When you meet someone, you like to find out as much about them as you can before going alone on a date.  Especially if you were not introduced to them by someone you know.  You research them.  Look at their online profiles.  Make sure they’re not on the FBI Most Wanted list and do a little bit of snooping around to both protect yourself and to make sure that they are what they claim to be.  He said he went to Stanford, but his Facebook profile says University of Phoenix.  Her Match.com profile says she loves animals, but a co-worker swears she’s a crazy cat lady.  You should do the same for your startup search.  Read articles about them.  Research the management team.  Talk to people who know the company.  This is a life altering decision, so do your homework.

Dating. You found a great prospect.  He asked you out.  And now you have to see if the chemistry works.  Unfortunately, you don’t have the benefit of dating for several months or years to make a decision about marrying your startup.  Sometimes you only have one date, and they pop the question.  Will you come work for us?  Your interviews may be your only shot to determine whether or not you are a match.  Make the most of your interviews.  Come prepared with the research you did.  You can be blinded by infatuation, so make sure to ask the tough questions.  And do your reference checks on them.  They aren’t the only ones who should be making sure you are what you seem to be.

Follow up. Don’t call the next day.  Don’t be a stalker.  It’s so hard to keep your cool when you find someone that triggers chemistry.  But you’re not planning to call them tomorrow and leave voicemails every day until they respond, right?  You want to at least seem a little bit unavailable.  You’re not desperate.  You have options.  You are confident and comfortable.  The same holds true with your startup search.  Express interest and follow up, but don’t overwhelm them with emails and phone calls, and don’t hang out in the parking lot to “accidentally” run into the hiring manager.  Startups want to know you’re interested, but they do not want to marry someone who seems desperate.

I just want to be friends. This one works both ways.  Sometimes they just want to be your friend, and sometimes you just want to be theirs.  And sometimes they are wacky stalker sociopaths, and you will change your phone number and go into witness protection.  But we won’t go there.  So the chemistry isn’t working.  At least not for one of you.  If you saw the relationship going further and they did not, it’s okay to be disappointed.  Handle it like an adult and realize that it just wasn’t meant to be.  The startup of your dreams awaits you around the corner and you just don’t know it yet.  Conversely, you want to let them down easy and professionally if you just want to be friends.  Be honest about your decision but don’t make it personal.  They have invested time and emotion courting you, and you never know when you might run into them again some day.

Pulling the trigger. That day has arrived.  You want to marry her.  She wants to say yes.  Be decisive.  You’re in or you’re out.  Startups want someone who can make decisions and move quickly.  “Thinking it over” for several days tells them you aren’t startup material.  But you feel a little nervous.  That’s normal.  If you don’t feel at least a little bit nervous, then you have not grasped the enormity of your decision and what it means to your life.  However, if you can’t commit within 72 hours of getting an offer, something is wrong.  She’s either not the right startup for you, or you haven’t done enough due diligence to gain comfort with your commitment.

Live happily ever after. Congratulations!  You’ve found the love of your life and look forward to building a wonderful future together.  There will be good times and bad times along the way.  Enjoy the ride, and luck/economy/market space willing, you will live a happy life together and retire early.  And don’t be jealous of the startups your friends have married.  More stock options.  Cooler technology.  Better working conditions.  No marriage is perfect, and your friend’s startup marriage has many issues too.  Focus on your own marriage, and you will be much more successful and happy.


Can Professional Poker Teach Us How to Identify Good Employees?

November 28, 2009

I can tell you’re bluffing.  Good poker players have an ability to “read” other players at the table and get insight into the strength of their hand.  While much of this can be learned, the reality is that some people have a natural ability to read the body language, expressions and patterns of behavior in other people.  They can easily tell when someone is bluffing.  I’ve witnessed the same thing in the recruiting field.

Ever get a bad feeling about a candidate?  You meet someone and there’s just something about them you don’t like.  You have no reason to dislike them, but you have a gut feeling.  Well, gut feelings mean something.  Every time I ignore my bad feeling about a candidate, it comes back to haunt me.  This is the recruiting world’s version of “reading” a player.

There are candidates holding really bad hands who are very good at bluffing.  There are also candidates who do not show a great deal of self confidence even though they are holding a full house.  It is a recruiter’s job to help read those candidates properly.  Sometimes this is easy.  You can tell from a person’s body language when they walk in the room that they are too aggressive for the group or that they are not strong enough to manage difficult employees or they don’t have the killer instinct necessary to survive in a competitive sales group.  Other times it is very difficult to read someone and you have no gut feeling one way or another.

Every company should make an effort to determine who within their organization has a natural ability to read candidates and pick winners and losers.  Those individuals should be involved in the recruiting process and trained to perfect their talent.  Once these poker players better understand what signals are helping to drive their natural instincts, they can also help train others about subtle things to look for in the interview process.

You can identify these good readers by looking at your company’s past hiring history and determining who interviewed the top people at your company and who interviewed the bottom performers.  You may begin to see a pattern of people who recommended hiring the top performers and those that recommended passing on the problem employees.  (You might also identify people who are very poor at judging candidates and consistently recommend hiring the wrong people.  Either remove those people from the selection process or make sure they get adequate training.)

Picking top employees is one of the most difficult parts of recruiting.  This is one approach that might help in the selection process to avoid hiring mistakes.


Did Stock Option Expensing Kill Growth Companies?

November 24, 2009

Back in 2004, the Financial Accounting Standards Board (FASB) issued a ruling requiring companies to expense the “value” of stock options granted to employees.  What does this mean?  Essentially, companies are now required to estimate a non-cash expense on their income statement for employee stock options instead of just accounting for them as equity.  I actually filed a short paper with the FASB against their planned expensing, but they clearly ignored me!  Many people feared that expensing stock options could kill the goose that lays golden eggs in Silicon Valley and other areas with high growth companies, since expensing would discourage issuing options and make it harder to hire top employees at higher risk companies.

So what has happened since 2004?  I wasn’t able to find any studies on the impact this ruling has had on stock option grants.  My own non-scientific analysis based on discussions with Silicon Valley companies leads me to conclude that this rule change has significantly decreased stock option issuance to rank-and-file employees.  Companies that used to be very generous with options at all levels have cut back not only the amount of stock granted but also eliminated grants to lower level employees.  Earlier stage startups don’t seem to be hit quite as hard, but the overall culture has shifted to reducing stock options for employees.

The impact of this cultural change is an increased difficulty in hiring top talent at high growth companies and startups who have limited cash and benefits to offer.  In a competitive job market, this puts growing, innovative companies at a disadvantage.  Talented engineers weigh the risks and rewards of companies when making career decisions.  If higher risk companies can no longer offer high rewards, what impact does this have on the ability of these companies to compete for talent and grow to the next level?  I’d be curious if anyone has observed similar happenings with reduced stock option grants in the market.


Will Gen Y Kill US Competitiveness?

September 29, 2009

I’m amazed at the continuing flow of stories I hear from colleagues about the alarming behavior that is common amongst the “Gen Y” employee group. While you can’t stereotype an entire generation, the theme is too common to ignore. And I’ve seen it personally with clients as well. The behavior exhibited will I’m sure strike a chord with what many of you have observed. Entitlement, aggressive, disrespectful, no value placed on experience, incredible overestimation ability and knowledge, need for constant recognition.

My question is whether or not these behaviors will last throughout the careers of a large percentage of the Gen Ys and how this will impact the US global competitiveness. This whole attitude of expecting a reward just for showing up does not bode well when India and China are rapidly improving their skills and raising the bar on performance. I know colleagues who actually have had to lower the bar on performance for their Gen Y group because the morale plummets when people aren’t getting constant praise and promotions. What will the consequences be ten years from now if we have an entire generation of entrepreneurs and employees who have an inflated sense of accomplishment and create inferior companies and products that they believe to be world class?

There is hope. I have to admit that I too had some of these same behaviors after graduating from college in the early 90’s. However, I very quickly was hit in the face with a shot of reality that made me understand how the corporate world really worked. I thought I could walk in and help generate new business for the international accounting firm where I worked based on my accounting skills and personality. It took one sales call with senior partners for me to quickly understand that bringing in business was more about who you know and not just about being smart and having the right attitude.

My concern is that I rarely have seen or heard of Gen Y employees actually reacting to being hit with these so-called doses of reality. In many cases, the inflated sense of knowledge and accomplishment is so ingrained that they are oblivious to a knock on the head that should clearly demonstrate to them that there is no substitute for experience. No matter how smart you think you are.

I can only hope that most of these individuals do wake up and realize the value of experience and putting in time to learn skills on the job, rather than justifying entitlement behavior as “the new paradigm” for a smarter and faster generation of employees that have outgrown the old rules of business. Otherwise, we could be in big trouble.


I Guarantee You Ask Illegal Interview Questions

September 17, 2009

Have you ever asked someone an illegal interview question?  I have.  I didn’t know that I had asked an illegal question.  I was younger and poorly trained, but I could just as easily have been older and poorly trained.  In fact, my experience is that probably 95%+ of all interviewers not only have asked illegal interview questions in the past, but they probably continue to do so today.  They don’t intentionally do it.  The fact is that in a state like California the laws are so strict that without training and constant reminders, everyone is bound to slip up and ask something that is technically not legal to ask.

Here’s a quizz.  Which of the following questions is considered “illegal” to ask in an interview in California?

  • Based on your resume, it looks like you grew up in New Jersey.  I did too.  What part of New Jersey are you from?
  • I noticed you have a cast on your leg.  Did you break it?
  • Are you planning to have children in the next two years?
  • I see you went to Notre Dame.  Are you Catholic?  I am too.  We have a lot of great Catholics who work here.
  • Your resume says you speak Chinese.  Did you grow up there or just learn the language?
  • When did you graduate from high school?
  • What part of the Bay Area do you live in?  Will commuting be an issue?

So, which ones are illegal?  Technically, all of them are illegal.  In California, and many other states, questions that don’t directly relate to the job qualifications are off limits.  Here’s more specific information:

  • Based on your resume, it looks like you grew up in New Jersey.  I did too.  What part of New Jersey are you from?

This question has nothing to do with the job qualifications.  And if the candidate tells you they grew up in an area that happens to be known for having a large ethnic or religious population, the candidate could potentially claim you used the answer to this interview question in order to discriminate against them.

  • I noticed you have a cast on your leg.  Did you break it?

The biggest risk with this question relates to physical disabilities.  What if the candidate tells you that have a physical handicap that required surgery and will require more surgeries?  When you don’t hire them, you open yourself up for a claim that you didn’t hire them because you knew they were handicapped.

  • Are you planning to have children in the next two years?

Kind of an easy one.  You can’t discriminate against someone for having children or planning to have them.

  • I see you went to Notre Dame.  Are you Catholic?  I am too.  We have a lot of great Catholics who work here.

Another fairly easy one.  Just because you share the same ethnic or religious status with someone doesn’t save you from a discrimination claim.

  • Your resume says you speak Chinese.  Did you grow up there or just learn the language?

Similar to the first question, you can’t ask someone where they are from or about their ethnic origin.

  • When did you graduate from high school?

While it is okay to confirm someone has a degree, you cannot ask them about when they obtained it.  This opens you up to an age discrimination claim when the person thinks you asked the question to see how old they are.

  • What part of the Bay Area do you live in?  Will commuting be an issue?

This is a tricky one.  Technically, it’s illegal.  While you may have concerns about someone commuting a long distance to your place of business, it is not part of the job.  If the person tells you they are commuting from an area with a particular ethnic or minority population, you risk a discrimination charge.  And if ANYONE in your company currently deals with a long commute, you can’t defend your decision not to hire someone based on where they live.  All you can do is be clear on the expectations for the hours they must be onsite and get their commitment that this will not be an issue.

While a lot of this might seem a little frightening, the truth is that candidates rarely file suit over discrimination during an interview process.  Something very blatant normally has to happen that is much more definitive than the interview questions given as examples above.  However, it only takes one disgruntled candidate to ruin your mood for the next several months while you go through a court case.  You don’t want to be known as the person who cost your firm a $25,000 settlement with a candidate because you asked how they broke their leg when they came in for an interview.


Your Facebook Profile Just Cost You a Job

August 13, 2009

I overheard someone recently say she needed a temp for her office and was concerned about the selection process after a previous temp went a little nutty.  Her solution?  Check out the Facebook and MySpace profiles she could access for the new batch of candidates.  She passed on a couple of individuals who had “hardcore party” photos posted on their profiles and opted for someone who had nothing risque that was publicly viewable.

This is not an isolated incident.  I’ve heard more and more hiring managers and recruiters discuss their voyeuristic tendencies when trying to determine if they should hire a candidate.  I even know of a recruiter who checked a high maintenance employee’s MySpace page and saw the tagline “I am so ready for a new job”.  This clued in management that the employee was actively interviewing, so they were prepared when her resignation came a week later.

Much of this kind of candidate evaluation is actually illegal in many states.  You can’t base a hiring decision on what pictures are posted on someone’s MySpace page as it makes you ripe for a discrimination charge.  While an employer could say the picture of the water bong was the deciding factor for not hiring a candidate, pictures of someone’s small children, a religious ceremony, a 50th birthday party, an ethnic celebration or other personal items that are also posted could be used to claim the employer discriminated based on age, religion, etc.

But candidates are fooling themselves if they think the law will prevent many employers from looking anyway.  Most employers don’t even realize the practice might be illegal either.  And proving that a company used your Facebook profile in order to discriminate against you would be quite difficult to prove in court.

The lesson is that everyone should be careful about what is publicly available through social network profiles.  Facebook, MySpace and others have privacy settings that should be activated by everyone.  Today.  Log out of your accounts and do a search on your name to see what others can publicly access.  Even if you’re not looking for a new job, your current employer can easily access public social network information that can be used to your detriment.  You might think the profanity-laden Wall Post by your old college buddy, Spanky, is hillarious, but your company’s CEO might not find it as amusing.


VentureLoop adds job widgets

March 22, 2009

VentureLoop Launches New Free Career Site Widgets for Venture Capital Firms and Venture-backed Companies

March 18, 2009

San Francisco, California, March 18, 2008 – VentureLoop, the worldwide leader in hosted career sites for venture capital firms, announced the launch of two new career site widgets. The free version of these widgets will enable venture capital firms and their portfolio companies to host a career page on their public websites simply by placing a small piece of code provided by VentureLoop. With more than 30 venture capital firms already using VentureLoop’s premium career site product, the new release will give flexibility for more venture capital firms to display the job openings of their portfolio companies while also enabling their portfolio companies to easily display jobs on their own website. All jobs posted by the portfolio companies automatically synchronize with the venture firm’s career page. “The advances in technology have enabled us to offer a free version of our premium product,” said Jeremy McCarthy, VentureLoop’s CEO. “Many venture capital firms prefer the premium version of our career website, but this new widget will enable every venture capital firm to add a career page to their website, regardless of their budget. The free portfolio company career page widget provides a remarkably simple way for companies to have their own career site without buying an expensive applicant tracking system or waiting for IT to update their postings. It also automatically synchronizes with each of their venture investors. We believe the venture community will continue creating thousands of jobs each year, and we will be there to support their efforts.” The portfolio company widget launched in beta in late 2008, and both free widgets will be available for download off the VentureLoop website by validated venture firms and portfolio companies by the end of March. Some of the features include basic customization of styles for website presentation, customized industry names to match venture firm websites, a stored resume database for all job applications, and a monthly email of metrics showing the traffic and resume activity of the website. VentureLoop’s premium version allows for more customization, RSS feeds for jobs, integration of job listings on portfolio company pages of a venture firm’s website, and regular refreshing of jobs by VentureLoop account managers for all portfolio companies. Interested venture firms and companies can email sales@ventureloop.com to request more information about the free widget or premium career site product. You can see more information at the following link: http://www.ventureloop.com/ventureloop/jobwidget.php About VentureLoop VentureLoop is the leading website dedicated to job postings for emerging venture-backed companies and startup companies. VentureLoop creates direct relationships with the world’s top venture capital firms to connect their portfolio companies with quality candidates. Candidates can search the VentureLoop website for thousands of jobs at startups and growth companies backed by top-tier venture capital firms. VentureLoop’s VentureCareers product is a hosted career page for venture capital firms, allowing portfolio companies to advertise job openings directly onto their venture capital firm’s public website. VentureLoop also publishes the weekly VentureLoop Emerging Growth Newsletter, which communicates valuable information about emerging growth company news, funding, and career advice. Find out more at www.ventureloop.com.


iPhone 3G mania

July 11, 2008

The photo is dark, but this is the line 100+ deep on Chestnut Street in San Francisco waiting in line for the iPhone 3G.  Yikes.


No IPOs, but is it all bad?

July 7, 2008

An interesting perspective on the seemingly bad news that there were no VC-backed IPOs this past quarter.

Update: VCs Reap What They Sow

Stacey Higginbotham, Tuesday, July 1, 2008 at 5:00 PM PT

There’s grim data out today from two sources that track venture capital exits, both of whom noted that not a single venture-backed company went public in the second quarter of 2008. This is a grim news indeed, but not surprising.

Read full story