Seven Questions Employees Should Ask Before Joining a Startup
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?