There’s been a huge trend towards joining startups and fast growing tech companies ever since Wall Street blew up between 2008-2010. The top companies to work for no longer are dominated by the Goldmans, Mckinseys, and Bains of the world. The Googles, Facebooks, and thousands of startups you’ve never heard of are the employers of choice now.
One of the biggest realizations I’ve had going from an enormous investment bank to consulting for various startups is that if you fake it, you probably won’t make it for very long. When you’re at a huge organization, it’s easy to hide behind bureaucracy, layers of middle management, and massive amounts of inefficiencies. If you stop coming into work for a month at a large organization, chances are high the business will continue as usual. The extreme example is an Indian government employee who called in sick for 24 years!
At a small company, you must know your stuff and produce. Small companies generally have tighter budgets, less people by some definition, and a time limit to expiration given many startups are loss-making. If a company burns $10 million a year and only has $12 million left in the bank, the pressure is on!
There’s no room for holding meetings about meetings on what to do. There’s no room for people telling others what to do without doing anything themselves. Everybody must pitch in to produce something valuable.
Now think about the dichotomy between small companies and large companies from an investor’s point of view. Do you want to invest your money in ex-growth companies where people have a tendency to come in late, leave early, and do the bare minimum? I don’t. The hustle, drive, and innovation is why I’m a big fan of investing in growth companies and private startups. The problem now is that the private equity market is richly valued.