Entrepreneur and startup founder, Dalton Caldwell, discusses the struggles of working at FAANG companies like Facebook and Google, including misconceptions about the job and the game-like retention systems. He also explores the challenges of working on speculative science projects and emphasizes the importance of aligning decisions with personal values.
Founders may have misguided expectations about the challenges and impact of working at a FAANG company.
Skills and processes learned at a big company may not translate well to the fast-paced world of startups.
Deep dives
Misunderstanding the Value of Fang
Many technical founders misunderstand the value they can extract from working at a Fang (Facebook, Amazon, Netflix, Google) company. They often assume that the experiences and benefits enjoyed by employees and managers at Fang automatically apply to them as founders. However, in reality, the founder path is quite different from the employee path. While some technical founders do get to work on challenging technical problems at a larger scale, many end up with less impactful or even disappointing projects. The allure and brand of Fang can create a false impression of the job, leading to misguided expectations.
Limited Transferability of Skills to Startups
Another common assumption is that working at Fang will provide valuable lessons and skills directly applicable to starting a startup. While some green founders may learn how to work on a team, navigate corporate politics, and gain a general understanding of how corporations function, they often find that the skills and processes they learn at big companies do not translate well to the world of startups. The extensive tooling, infrastructure, and rigid processes found at Fang can create a significant disconnect when founders have to adapt to the resource-constrained and fast-paced environment of a startup.
Trapped in the Fang Retention System
Working at a Fang company means entering a highly engineered and gamified retention system. The lure of equity and its vesting schedule, coupled with the pressure to keep up with peers' spending and the fear of missing out on promotions or career growth, can create a trap that discourages founders from leaving. The system is carefully designed to encourage loss aversion and attachment to the perceived safety of staying within the Fang ecosystem. Breaking free from this trap requires maintaining a low personal burn rate, not getting hooked on the money and perks, and being aware that leaving Fang does not permanently close the door for future opportunities.
Dalton Caldwell and Michael Seibel discuss the struggles of working at FAANG (Facebook, Apple, Amazon, Netflix, Google) and how to strategize leaving a big tech job to become a founder at a startup.