Working at a startup can be an exciting experience — but when you’re presented with an offer, it’s important to make sure you’ve considered all the various details before signing on the dotted line. After all, once you accept that offer, there’s no turning back — and being unprepared can lead to a lot of stress and regret down the road.
That’s why we at Tech Talent Hub created the Ultimate Pre-Startup Offer Checklist—to help tech talents get a better sense of what they should consider when evaluating an offer from a startup.
We’ve broken down the most important elements of any offer from a startup — from culture fit to equity compensation — and offered detailed advice on how to think through each one. Whether you’re getting ready for your first startup job or want to make sure you don’t miss any important details in your next offer, this checklist has everything you need to ensure your long-term success in joining a startup.
Evaluate the Culture of the Startup
Before you join a startup team, it’s important to evaluate the culture of the company. The culture of the organization will impact how you feel about going to work every day, which is why it’s so important to take a good hard look at what you can expect.
Take some time to read reviews, talk to current and former employees, and get a sense of the vibe of the team. Is this an organization that encourages innovation and collaboration? Is there an emphasis on diversity and inclusion? Do they offer any special benefits or perks that would be attractive to you? These are all questions worth considering before signing the offer.
Understand Organization and Your Specific Role in the Team
When considering an offer from a startup, first, take time to understand the organization as a whole. What have they achieved so far? Do you believe in their vision? Do they have a successful track record? Once you feel comfortable with the overall objectives and culture of the company, move on to exploring your own individual role.
You should be able to answer questions like: What is expected of me and what qualifications are necessary? Who will I report to and how will my performance be measured? What is my team’s mission and what challenges can I expect to face?
Your responsibility includes understanding not only your individual role but also how it fits into the larger picture. It’s important to know how each team member contributes to a successful outcome and how your expertise can take the startup forward. Lastly, make sure that you agree with the terms of the contract so that you know what your obligations are from the start.
Research the Startup’s Funding and Growth Trajectory
It’s essential to know how much investment a startup has raised, and what its growth trajectory looks like. It’s not enough to just know the total number of funding rounds or the amount of money invested in total—you’ll want to dig deeper. Do some research and find out which VC firms are involved, or who the main investors are—this information can be telling about the direction that the startup is heading in.
Track Funding Rounds
One thing you can do is track different stages of funding and what each round was used for. This can give you an indication of whether or not their resources are being invested in sustainable long-term growth or if they’re just trying to get more users quickly. If they are investing in long-term growth, that can be a great sign that things could take off soon.
Look at Market Share
Another thing you should do is check out their market share compared to their competitors. This can give you an indication of how well they’re doing compared to similar businesses and help you decide if this is a company worth investing in.
Make sure to ask questions and be comfortable with the answers you get back. The more information you have, the better your decision will be when accepting an offer from a startup. With your research, you should know exactly what kind of offer is on the table before signing on or committing any resources.
Check the Salary, Benefits and Equity Compensation
Now that you’ve done your research and checked the culture, it’s time to talk about financials. Salary obviously plays a large part in determining if a startup offer is right for you, but also consider benefits and equity as a part of your compensation package.
Startup salary can range anywhere from $80,000 – $200,000 a year depending on the size of the company and the role. However, many startups tend to provide stock compensation which may be beneficial if the company takes off. Make sure to ask what benefits are included such as health insurance, vacation days, parental leave and more.
When taking a startup offer it’s also important to understand the types of equity (common stock, preferred Stock, restricted Stock Units-RSUs etc.)
Equity compensation can be attractive for those who are able to take more calculated risks when it comes to their finances, so it’s worth thinking about as well when accepting an offer. Don’t forget to ask your potential employer questions about this so you can make sure you’re getting a fair deal!
Assess the Team Dynamics and Work Environment
One more thing to factor in before accepting any offer from a startup is the team dynamics and work environment. Working at a startup can be a great experience, but it can also be overwhelming and frustrating when things don’t go as planned. That’s why it’s really important to assess how things are run in the company.
Here are some questions you should ask yourself when evaluating the team dynamics and work environment:
- How does the team interact with each other?
- Are there any red flags that you notice in the team culture?
- Is there a clear set of expectations for everyone?
- Does the company integrate feedback from all members?
- Are people encouraged to think outside of the box?
- What type of career development opportunities are available?
- How flexible is the office/work schedule?
- Are they open to remote or hybrid work?
- How much autonomy do you have in making decisions on projects?
- Would you feel comfortable to ask for annual or sick leaves?
These questions can give you an idea of whether or not this company is a good cultural fit for you. Remember, working at a startup means putting in long hours and hard work—but if you stay ahead of these questions, chances are that it can become one of your most rewarding experiences!
Make Sure You Can Work Comfortably With Your Colleagues
As important as the salary and benefits are, remember to think about your work environment. After all, you don’t want to be stuck in the same office with people you can’t stand.
So make sure you can get along with your colleagues—it’ll make or break the job! Ask yourself:
- Are the personalities of my co-workers and team members compatible?
- How do people communicate and collaborate?
- What is the team’s view on constructive criticism and feedback?
- Does management set reasonable goals and deadlines?
- How often do they provide guidance and feedback?
By taking the time to consider these questions, you get a better idea of how it would feel to work in that particular startup. Plus, getting a better understanding of your potential team’s dynamics means that you can adjust or negotiate accordingly.
Joining a startup can be an incredibly rewarding experience, but only if you make an informed decision. Before accepting an offer from a startup, make sure you’ve taken the time to do your due diligence, research the company, and make sure the offer is something that you’re really interested in.
Use this checklist as a guide to make sure you’ve got all the information you need to make the right decision. With Tech Talent Hub’s help, you can make sure you’re getting an offer that’s worth your time and efforts. Remember, taking the plunge with a startup can be an incredibly rewarding, life-changing journey – but only if you choose the right career opportunity that is aligned with your expectations and you know the parts you should be flexible and adopt if you join the team.
