Moving from established to startup company?

[Trouble Maker]

I've been working in the automotive field in legacy/traditional companies for about 17 years in the R&D area, a vast majority of my career; roughly half at a Tier 1 and half at an OEM.
I'm strongly considering moving over to an AD or EV startup, likely middle to late stage.

Anyone here work in the startup world? How is it, versus established companies?

This would be a big move conceptually and literally. It would likely mean moving across the country away from where I grew up and away from the job stability I currently have.

Any thoughts or insight is greatly appreciated!

 

[Plcamp]

Heh, My best insight is that it’s far more rewarding, even if it fails.

I did this twice, from a giant corp to a later stage startup spun off from them…which was then acquired by another giant corp that I left to join a new startup (founded by two folks that I worked with in all four episodes). I retired from that just before they were acquired by another giant corporation.. what fun.

 

[sq225917]

Worked at two start ups, IT/ chip design and sporting goods. Hugely rewarding, varied and demanding roles on a day to day basis. My advice would be to put away a buffer should it go tits up, but other than that go for it.

 

[Trouble Maker]

My best insight is that it’s far more rewarding, even if it fails.

Hugely rewarding,

That's what I'm looking for! I just have to decide if this risk is worth it, but I think it is.

varied and demanding roles on a day to day basis.

In the past some of my roles and groups have been like this, not traditional in the more established companies in this industry, but had been more common at the company I'm at. But increasingly recently this is less true in the area I'm in now and roles I've been assigned, and it's becoming far less rewarding or engaging.

I retired from that just before they were acquired by another giant corporation.. what fun.

Did you spend roughly first 'half' of life in more traditional and established companies? How was the transition? Just curious since I'm hopefully roughly there in the timeline of my career, and it sounds like your timeline could have been similar.

My advice would be to put away a buffer should it go tits up

I have an Ohio sized buffer, need to work on a Cali sized buffer. Realistically not a huge issue, we have enough savings. Sign on bonus should make us 100% fine.
Ignoring possible hiring freezes as a reaction to recent events most places seem really hungry for talent and experience. So I feel that once I gain some even more direct experience in the field and with a startup it seems like it should be easier to 'jump' to another if needed.

but other than that go for it.

Thanks!

 

[Plcamp]

Did you spend roughly first 'half' of life in more traditional and established companies?

First 3/4…retired early.

 

[amirm]

Definitely something you want to try during your full career. As noted, they are more fun to work at due to closer contact with customer and much less structure to deal with. Ability to get stock/stock options is hugely important to get out of the rat race of pure salary.

On the other hand, they can go out of business overnight. So make sure wherever you move to has other opportunities. Or that you are so marketable that you can make another move if it doesn't work out.

FYI, moving can be very stressful by itself. See if you can get a start-up bonus to deal with myriad of expenses you get hit with. I am talking beyond just moving expenses.

Bottom line, yes, absolutely be ready to make the move. Otherwise you will get depressing news of those who tried it and got way ahead, vs you not.

 

[Plcamp]

Examine and agree with the exit strategy of the startup before you join, and negotiate some ownership stake…(I did that instead of any fixed salary for a year). I became convinced they had a win that my skills could accelerate, and it worked out. It usually does not, so be aware of that.

“We are targeting the sale of our company to a major industry player by proving value of patented IP within three years” is a good example of an exit strategy one could evaluate.

 

[voodooless]

I run a startup myself. It’s very rewarding, great fun but can also be stressful at times. All in all though, I think there are more pro’s than cons. Responsibility, initiative and individuality is usually greatly rewarded. It makes for a great place to work an cohabitate with other great minds.

I’d say, as a job, go for it! As for the moving: that’s very individual. Some people don’t mind, others like to stay where they are. That is probably the much bigger question to find an answer for.

 

[BDWoody]

I've been involved on the venture capital side, and I would spend a fair bit of time making sure the key decision makers especially are top notch and well respected. I've seen lots more fail than succeed, but when they succeed it can be truly spectacular. I suppose they sometimes fail spectacularly too, but that's part of the risk.

As long as you have plenty of personal financial cushion, and a high tolerance for risk, it's definitely worth exploring imho.

My only other question would be how your SO would handle the relative loss of security and the increase in stress and potentially increased time demands that go with this kind of decision. Seen this be a big issue first hand as well...

Don't mean this to sound negative at all, as this is how you can leapfrog the whole system, and I hope this is your chance to do it. Just giving another couple of questions to ponder as you go through your decision process.

 

[Marc v E]

I've been working in the automotive field in legacy/traditional companies for about 17 years in the R&D area, a vast majority of my career; roughly half at a Tier 1 and half at an OEM.
I'm strongly considering moving over to an AD or EV startup, likely middle to late stage.

Anyone here work in the startup world? How is it, versus established companies?

This would be a big move conceptually and literally. It would likely mean moving across the country away from where I grew up and away from the job stability I currently have.

Any thoughts or insight is greatly appreciated!

Considering many of the now great OEMs will be gone and bankrupt in about 5 to 8 years, I think switching to an EV manufacturer is an excellent idea.

There is a risk of startups going bankrupt but I think this will not affect your job prospects. You can use your build up knowledge about evs to join another ev manufacturer as this is the way all car manufacturing will be done in a few years.

It will be a different working environment compared to a big oem for sure. Usually big companies tend to have well defined roles and slow proces changes. A startup or smaller company is way more open to change. Also roles are usually not that strict.

One final recommendation: if you want to work for a car manufacturer that has the best chance to be still around at 2030 and be on the forefront of technology, apply at Tesla. I know someone who worked there and got back after a short hiatus because he was missing the cooperation, technical challenges and smart colleagues. It is a little known fact that the financial health of many oems is not the best to say the least. Many have around 150 billion in debt. Tesla is financially in a far better state and way ahead of everyone in ev manufacturing at large scale except for maybe a few Chinese players like BYD.

 

[Trouble Maker]

FYI, moving can be very stressful by itself.

Agreed! That's why baring something like this move, we are in our forever house. Helps that it's awesome in an awesome city, in an awesome location in this city.

See if you can get a start-up bonus to deal with myriad of expenses you get hit with. I am talking beyond just moving expenses.

I believe these companies covering moving expenses, plus (sometimes sizable) sign on bonus is pretty normal at this time.

and negotiate some ownership stake

Most of the places I'm considering, at the stages they are in, offer RSUs and they can be 20-40% of total compensation. But it seems like monopoly money, especially having not been in this type of company before and being in a location where startups are a little less common. I don't think most places yet accept RSUs as payment for rent or food.

Examine and agree with the exit strategy of the startup before you join,

I... I would spend a fair bit of time making sure the key decision makers especially are top notch and well respected

Don't mean this to sound negative at all... Just giving another couple of questions to ponder as you go through your decision process.

This two points is exactly the kind of questions and insight I was looking for. Definitely not just asking for 'good' or 'bad', but both, and also ways to find out as much as possible about these companies too.

As long as you have plenty of personal financial cushion, and a high tolerance for risk, it's definitely worth exploring imho.

My only other question would be how your SO would handle the relative loss of security and the increase in stress and potentially increased time demands that go with this kind of decision. Seen this be a big issue first hand as well...

Definitely having lots of conversations with my better half about the concept of moving and working in a new & different space.

My risk tolerance is typically low, but I have to balance that with doing what I want to be doing vs where I'm at right now. I would be lying if I said possibility of a high $ payout wasn't a factor. But I'm much more focused on finding the right (company) partner and doing something that's exciting and engaging in a more flexible and faster moving space. That's what would be worth the risk for me personally. It seems like what most here are saying is that the startup environment is where that would be, so that's good to hear! SOs risk tolerance is typically higher so that should be OK. This could significantly move our retirement timeline and/or comfort level either way, so it's something we need to talk about more.

WLB is a big sticking point for me, and my SO really appreciates that, so it's something we'll have to heavily consider going forward. But also figure out how to get real info about this VS HR/Hiring manager sales pitches. What's the point of moving to somewhere like California where we can go on beautiful hikes and I can drive to actual mountains to ski on if I don't have enough personal time for us to enjoy it?

Thanks everyone so far for all of the amazing insights!