Small Company, Big Impact: Tales from Startup Life

What Every Engineer Should Know Before Joining a Startup

I have worked at several startups over the years, one where I was a founding engineer at a pre-seed company and others in the late venture capital stages. I've also been lucky to go through several acquisitions and mergers. Let me be the first to tell you it's not always glamorous; things get hectic. You ship fast, and things break seemingly at the most inconvenient times, so late nights are part of the game. Don't let that scare you off—I love working at startups and will eventually return to it. Here are some things I wish I knew before getting into the world.

Venture Capital: Understanding Startup Stages

First, for those unfamiliar with venture capital, there are typically several stages of startups. They range from the pre-seed funding level to late-stage funding. Below is a breakdown that explains each stage and what it means for developers joining the company:

Stage

Typical VC Funding Range

Company Status

What to Expect as a Developer

Pre-seed

$50K-$500K

Just an idea, MVP building

Wearing multiple hats, building from scratch, high uncertainty

Seed

$500K-$2M

Testing product-market fit

Rapid prototyping, frequent pivots, small engineering team

Series A

$2M-$15M

Product launched, early traction

Building scalable infrastructure, establishing engineering processes

Series B

$15M-$50M

Proven business model, scaling

Specialized roles, team growth, technical debt challenges

Series C & beyond

$50M+

Rapid scaling, market expansion

Enterprise-grade systems, specialized teams, acquisition preparation

Generally speaking, the earlier the stage, the higher the risk—but it also presents an opportunity to have a significant impact as a developer. Depending on your risk tolerance, maybe a pre-seed/seed startup isn't for you, and you should target a later-stage startup with a lower likelihood of failing.

Compensation: Reality Check

I hear from many people who want to work at startups because they hope they will eventually get a massive payday. I was one of those people when I started my career. Let me be the bearer of bad news: it doesn't always work out that way.

As mentioned earlier, I have been through a couple of acquisitions—one with a 5-figure payout (even less after taxes) and the other resulting in no payout, which was an unfortunate reality check when it happened. FanDual and Eero were two public examples of significant acquisitions that netted nothing for employees. So, if compensation is your primary motivating factor, you're barking up the wrong tree.

With that being said, compensation at startups typically follows these patterns:

  1. Base salary: Often below market rate compared to established companies

  2. Equity: The famous "lottery ticket"—usually worthless until a liquidation event (acquisition or IPO), can be life-changing

  3. Benefits: Generally fewer perks than big tech (though improving in competitive markets)

  4. Learning opportunities: Immense but rarely quantified in offer letters

When evaluating a startup offer, I recommend you assume your equity is worth nothing and decide if you would still be satisfied. If yes, great! If the equity pays off, consider it a bonus.

What It's Like Being at a Startup

Startup life can be characterized by fast growth, resource constraints, and evolving requirements based on market feedback. Here's what your day-to-day might look like:

Wearing Multiple Hats

One day, you write frontend code; the next, you debug infrastructure issues or talk directly with customers about the product or their workflow challenges. Depending on your perspective, this variety can be exhilarating or exhausting.

Continuously Shipping

At startups, the mantra "done is better than perfect" isn't just a saying—it's survival. You will push code to production faster than you might be comfortable with. You will brainstorm a new feature on a Monday and have it shipped to production on Wednesday. On the flip side, this might be a multi-month process at Big Tech. So, at startups, you learn how to build pragmatic solutions and iterate quickly.

Creative Freedom

You can experiment with new technologies and approaches with fewer bureaucratic barriers and established processes. You will make dozens of technical decisions daily that would be predetermined at larger companies.

An Emotional Rollercoaster

Highs are higher, and the lows are lower. Landing a major customer might mean the company survives another six months, while a technical failure might threaten the entire business. This intensity creates strong bonds with colleagues but can be draining over time, so take care of yourself!

Are Startups the Right Fit for You?

I covered a lot about startups in this post, and you might wonder if startups are the right choice for you. Some questions to keep in mind are:

  • Are you excited about fast-paced environments where priorities shift frequently?

  • Are you motivated by the specific problems the company is working on?

  • Is this an opportunity to learn something new and expand your skill set?

  • Do you thrive when given autonomy, or do you prefer structured guidance?

  • Are you comfortable with a more modest salary in exchange for growth opportunities and potential equity upside?

Signs You Might Love Startup Life

You might thrive in startups if you:

  • Get energized by solving ambiguous problems

  • Feel constrained by bureaucracy and process

  • Value impact over perfection

  • Want to understand the whole business, not just the technical side of things

  • Enjoy building something from nothing

Signs You Might Want to Think Twice

Startups might not be your ideal environment if you:

  • Prefer stability and predictability in your work

  • Strongly value work-life boundaries

  • Need extensive mentorship or structured learning

  • Are at a life stage where financial certainty is important

Final Thoughts

Working at a startup isn't for everyone, but it can be a gratifying path for those who find beauty in the chaos and purpose in building something new. The financial outcomes might be uncertain, but professional and personal growth can be worthwhile.

I have never regretted my time at startups, even when acquisitions didn't pan out financially. The skills I gained, the network I built, and the perspective I developed have been invaluable throughout my career.

What has been your experience with startup life? I'd love to hear your stories in the comments below.

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