How often do tech start ups succeed?

[manlymatt83]

I'm working for a tech start up now, about to leave on may 8th. Trying to figure out what I want to do after that (and no, I don't need your advice AT, thanks though.)

(for those of you who know about my cross country road trip, the term AFTER applies to both me leaving my current job and completing the road trip)

Part of me wants to do some consulting and rake in the major dough, another part of me wants to work at another start up (there are offers), another part of me wants to grow my personal company (see signature), and another part of me wants to do a mix of the three.

The start up I'm at seems to be doing OK. I'm leaving because I don't believe in the idea and can't stand working here, but i think they'll succeed. But it was my first start up. I wonder if going to another start up will yield the same sort of confidence I had/have in this one.

So I ask: do most start ups succeed? Do most get bought out eventually? Does it usually not work out? How do they pan out?

 

[E equals MC2]

OT: Um.. weren't you on a cross-country roadtrip?

 

[manlymatt83]

Originally posted by: E equals MC2
OT: Um.. weren't you on a cross-country roadtrip?

My last day at my current job is May 8th, and then yes, I am leaving after that.

 

[Dr. Detroit]

Most do end up getting bought out, not IPO major $$$$$, but acquired by a public company looking to increase their IP holdings and innovate.

Many times the start-ups are sold for less money than what the VC's put into em so the common shareholders get nothing other than a pink-slip and maybe a cash-bonus if they help out with the transition rather than leaving the company.

 

[Capt Caveman]

I've worked for several start-ups. One got bought out for less money than my options were worth. Another folded due to funding. One went public which allowed me to take a 18 month sabbatical in CA and Seattle.

 

[Uppsala9496]

In my line of work, I see tech start-ups about half a dozen times a day.
I then don't see the account for another 10-12 months. I'd say the failure rate is close to 20-25%.

The remaining 75-80% that are still around in a year still have very poor financial statements (negative working capital, equity and net income).

In the last 7 years I haven't seen too many succeed.

Oh, and I would say a good 90% of them are backed by some if not a lot of VC funding.
Most of the tech companies that are start-ups that I see are from CA. I will see some from NC, GA, IL and MN.

 

[pcslookout]

Better luck next time.

 

[ravana]

Are you gonna do a post as you travel thing like the guy did last summer? (I can't remember his name for the life of me!)

edit: Searched, it was Muttsta.

That was a great thread.

 

[Special K]

Can I ask a dumb question - how does one even find out about these tech startups before they become big or fail/get bought out/etc.? I wouldn't imagine they would recruit through standard channels, so for anyone who has worked at one - can you elaborate how you learned of the opportunity?

 

[manlymatt83]

Originally posted by: Special K
Can I ask a dumb question - how does one even find out about these tech startups before they become big or fail/get bought out/etc.? I wouldn't imagine they would recruit through standard channels, so for anyone who has worked at one - can you elaborate how you learned of the opportunity?

All of mine I've found through recruiters. I posted my resume on monster.

Add web 2.0 type buzzwords to your resume like "MySQL, LAMP, Linux, PHP, etc." and you should get plenty of start up hits.

That is assuming you're good at those technologies.

 

[cheezy321]

I work for a sort-of startup. Its an online retail company that sells products like walkers and wheelchairs to the elderly. We have 2 storefronts and have been growing steadily over the past 5 years i have worked here.

We are hoping to get bought out in the next 2 - 3 years. I guess we will see what happens

EDIT: I am very interested to hear others experiences with startups. I just graduated from college so I am still young and can stick around here for a bit to see if things pan out.
Has anyone here had bad experiences with startups? I want to hear everyones experience.

 

[AccruedExpenditure]

Originally posted by: cheezy321
I work for a sort-of startup. Its an online retail company that sells products like walkers and wheelchairs to the elderly. We have 2 storefronts and have been growing steadily over the past 5 years i have worked here.

We are hoping to get bought out in the next 2 - 3 years. I guess we will see what happens

EDIT: I am very interested to hear others experiences with startups. I just graduated from college so I am still young and can stick around here for a bit to see if things pan out.
Has anyone here had bad experiences with startups? I want to hear everyones experience.

What's the name of the walker site? PM me.

 

[IceBergSLiM]

if you have the opportunity to work for yourself why would you choose anything else

 

[manlymatt83]

Originally posted by: IcebergSlim
if you have the opportunity to work for yourself why would you choose anything else

the opportunity to work with a team @ a start up and make lots of dough?

 

[JS80]

I audited this company that was a startup a few years ago. Some dude left 6 months before the company sold without exercising his options. His total option grant was worth $1.5 million.

 

[Gibson486]

Most end up selling their technology to some other firm. The last start up I worked for ended up selling their stuff to a major player in the electronics market ( I wasn't part of the team when it happened though). Rarely do you see Microsofts and Googles.

I actually work in consulting now. It is a whole different industry. You go from innovating at a start up to complying to rules in consulting. Oh and the money does not roll in from consulting until a couple years.

edit:

BTW, places usually do not get bought out. If you buy a company, you take the employees that come with it. What usually happens is that you sell the rights to what the start up has made. If the head of the start up is nice enough, you could very well profit well and even land a job at the place that bought it. If you come in as a contractor, you will probably not benefit from it unless you add that benefit to your contract.

 

[Gibson486]

Originally posted by: Special K
Can I ask a dumb question - how does one even find out about these tech startups before they become big or fail/get bought out/etc.? I wouldn't imagine they would recruit through standard channels, so for anyone who has worked at one - can you elaborate how you learned of the opportunity?

just go job searching. I found mine through my career counsler at school and I interned there. AFter I graduated, I applied to numerous start ups that I found on craigslist and other job search sites. The start up I interned at offered me a job, but I did not want to go to Texas. It's hard for a fresh grad to get a job at one because there usually is no room for training.

BTW: these were EE startups....