

Advice joining a startup - hiddenfrnch

Hi, I need an advice about joining a startup. I&#x27;m a young (~3y exp) full stack developer (java, javscript) working for a dev shop (french SSII). I always wanted to work for a startup so I purposed to a not yet startup my services. It&#x27;ll soon raise angel money and they purposed me to work as a frontend dev for 4% of equity + 1% based on performance. It will be work on the side of my current work. A competitor who will do nearly the same thing just raised 3M€. So they estimate to raise in 4 or 5 months at least 1M€.
For joining them, as to say I&#x27;ll be commited to the project, they want me to give them 500€.
Is it a good purposal ? Can you help me make my decision ? Thanks
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cblock811
They asked YOU to give THEM money!? That's absurd. I've worked in startups in
San Francisco for a few years and have never heard of this. I wouldn't bother.
I'm sure you can find another startup who needs frontend work that wouldn't
ask you to pay them.

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reseal05
500 Euros seems like a steep charge. I've never heard of a startup that
charged you. Usually it's the other way around - they pay you, even a small
amount. Most startups are also unable to raise money. This startup would need
to differentiate itself from the competitor and/or show traction to be able to
raise money, unless they're VERY well connected with the angel investors.

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gus_massa
I agree. The 500 euros are a big red flag. Also:

>> _It 'll soon raise angel money ..._

Soon is usually not as soon as expected.

Do they have another "employee"? Did they have someone before at your
position? How did the story ended?

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hiddenfrnch
They are not yet a startup. They are doing paper to get angel's fund so they
can incorporate in France. Founders used 1200$ to outsource their website in
India. There is 1 CEO, 1 CTO, 1 financial guy. They want to recruit a backend
dev (~9y exp) and me.

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coralreef
Why would they need to spend $1200 in India when they have a CTO? Cant their
CTO program?

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mkagenius
This is the funniest :) CTO doesn't want to code because he will get
distracted. from other important work. Like what?

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veryluckyxyz
I think at the stage you mention, there is really no way to evaluate it. You
have to go by what you feel.

The simplest question to answer would be opportunity cost. What will you lose
if you do this for the amount time it needs to be done and nothing works out
or you get fired when they finally start kicking-ass? If the answer is only
"time spent," then I think its OK to just say yes if you have 500 Euros to
gamble.

If the answer is more complicated than that, I suggest you evaluate it by
answering some or all of following questions (in no particular order)

Market: 1\. Are you convinced their pitch deck to you? 2\. How long do you
think it will take them to serve 0.5%-1% of their stated total addressable
market? Is that reasonable time in your scheme of things

Team and execution: 3\. Are you convinced that the founders/existing team will
do everything they can to acquire customers? Is that "everything" good enough
in your opinion? 4\. How much do you think they will make your life miserable
when they are in stress? Is that acceptable level of misery for 2-3 years?
(corollary: I hope you are convinced they won't dump you at the first
opportunity)

What can you do? 5\. Do you have the bandwidth to execute things, on the side,
while working full-time or part time? If you have to quit your job for the
startup very soon, would you be able to execute (financial or otherwise)?
Oftentimes, there is second guessing when the going gets tough -- so think
about that too 6\. How valuable is 500 Euros for you now? Can you blow it?

If answers to all the above ones point you in the direction of committing to
this effort, you should consider asking for investor status. You should also
consider asking for an upfront equity (for example: 0.5% of your 4% vesting on
the day you pay 500 Euros) and no cliff.

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pcrh
The 500 Euro is suspicious. It's not enough make a significant effect on a
serious proposal.

On the other hand if that is what they really need, they should either gives
you shares for it or have it structured as a loan to the company.

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mkagenius
500 euros == commitment? Are they kids?

