

Ask HN: Should I join a startup just because its backed by a famous VC? - theyeti

I&#x27;m currently in &quot;advanced discussions&quot; with regard to joining a dot com startup. While I do not see anything new in their product, their founder told me that they&#x27;ve been backed by a famous VC and this information is not public yet. 
Should I trust the founder and join the company, just because its backed by this renowned VC ? 
Also more importantly what questions should I ask the co-founders to make sure that I&#x27;m joining the right company ?
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rossfishkind
Just because a famous VC backs a company, doesn't mean that the company is set
for success. Join a company because you believe in their product and their
mission.

Most of all VCs invest in companies that end up going under, they are making
just as much of a risk as you are in joining the company.

In terms of questions to ask: \- What are your company goals and missions? \-
Where do you see the company in 2 years / 5 years / 10 years? \- What was your
motivation to start the company? (you want to understand their passions and
individual goals)

At the end of the day it's your decision. Go with what you believe in.

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hoppi
Well, ask for proof if you are uncertain of their claims.

Also, don't just join a startup due to it being backed by a famous VC. If you
can't get behind their product, goals, atmosphere etc then you will have a
miserable time regardless.

To really get a feel for the co-founders, you need to spend some time in non-
interview situations to fully understand their character and traits. Maybe try
and get them to sit down for a coffee and put your concerns on the table. Good
co-founders should appreciate the transparency.

~~~
theyeti
Well, I'd have loved to do that. But the company is located across the country
from where I'm located right now and its not feasible for me to talk to the
founders face to face.

I've had a couple of non interview talks with them and they sound like really
good people. On the other hand, in absence of a long term growth plan which
they've failed to present me with, its a bit risky on my side.

The VC investment seems like a reasonable explanation to believe that they
have a long term plan. But should I trust this explanation ?

~~~
ig1
You should go in with the assumption that the company will fail. So if you're
looking to relocate to a new city consider what will happen in that case, i.e.
are there other employers in that city who you'd want to work for, etc.

It also depends on the stage of the investment, the later stage an investment
the safer it's likely to be. If it's a seed investment of 500k then it's going
to be a high-risk startup, if it's a Series B of $20m then it's likely to be a
safer bet.

A better question to ask in terms of growth plans is what sort of metrics does
their VC need them to hit in the next 12 months for them to be willing to make
a follow-on investment.

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LukeFitzpatrick
I agree with the comments here. Join the startup if you believe in the 'team'
and the problem they are solving.

Look at the teams track record, is this their first startup? What experience
do they have? How committed are they? What do they require from you? Do they
have a clear way to acquire customers? Are you dealing with a chicken egg
problem? Do they have a clear goal to monetize their site? How long have they
spent on validation? Have they found customers that would pay for their
service before launching it? What's the time frame, as in, how long do they
expect you to be working on this project?

I read an article, I think it might of been on Sam Altman's site, that said,
you need a leader, a manager and a techie. Each having very distinctively
roles to play.

Having a reputable investor is a good sign, but doesn't mean it's going to
work. It all comes down to the team executing it. Focus on skill set of the
team, rather than the investors big name.

Do some background checks on the Founders, if anything seems fishy, get out of
there. On the other hand, if it looks like you have found an awesome team -
sign yourself up.

I'm on my second startup now, it's a side project. I'm interviewing people for
my team. I got hustler from Rutgers, who went out and got the sign ups for a
social network, she has connections to TechStars and Y Combinator. Her
previously startup, she was working with a growth hacker (which is what I do).
So we are a good match. Have 5 interviews with programmers over the next two
weeks, and I've found people that will help out with marketing and programming
for free. I focussed on 'specific sets of skills' I want my team to have.

Best of luck!

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notahacker
The famous VC commits funds to multiple startups, some of them with a much
more apparent route to success than others; it's also a lot easier to take a
punt on impressive founders with a fairly weak plan if they're not committing
to build the product or (especially) bring in users or revenue for it.

On the other hand "not seeing anything new" in a product doesn't mean it's
can't succeed; if there are other companies in that market doing pretty well
it's probably a data point in favour of the startup's survival chances.

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mindcrime
A company isn't going to succeed just because a "famous VC" invested in them.
I don't see any reason that should be a particularly large factor in your
decision. I think you should decide based on what you think of the product,
the team, their culture, etc.

