David Beisel has a very good article listing 7 questions that a candidate should ask before joining a startup. It is good to view from this perspective, because in employee point of view, joining a start-up company do have some considerable risks. Asking the following questions will give you more in-depth details about the company hence decrease the risk on joining a company that does not suit you:
- If you are receiving employee options, what is the number of fully-diluted outstanding shares?
- Has there ever been a down round, a flat round, or a CEO change?
- What is the burn rate and how much cash is in the bank now?
- What is the plan for exit strategy and its timeframe?
- Could you meet the CEO, the founder(s), and those on the management team?
- Are there plans in the next six months to hire anyone along the chain-in-command between your position and the CEO?
- How many employees did/does/will the company have six month ago, now, six months from now, a year from now?