If you're a PM who was recently laid off by a big tech company, now might be a great time to consider joining a startup.
I made the switch from PMing at Google to PMing at fast-growing startups including Coinbase (2017) and Brex (2020), and I believe there are three compelling reasons why other big tech PMs should consider making the same move.
But before getting into those reasons, it's important to note that joining a startup isn't for everyone. Startups are chaotic, and things are always changing. As a PM, you'll be impacted by these changes because of the cross-functional nature of product management. If you're uncomfortable with chaos and ambiguity, PMing at a startup probably isn't a good fit for you. Additionally, startups often pay less than big tech companies, and they may lack the processes and consistency of a larger organization. But if you thrive on turning chaos into clarity and are willing to trade a higher salary for the potential for greater impact and growth, read on to learn why joining a startup might be a good move for you.
The first reason to consider joining a startup is impact.
As a mid-level PM at a big tech company with 3-5 years of experience, you're likely working on a small part of a much larger product. When you join a fast-growing startup, you'll have the opportunity to take on more scope and have a greater impact. This is because startups are always facing big, hairy problems that need to be solved urgently, and PMs are well-suited to tackling these types of cross-functional challenges. But startups often don't have enough PMs to go around, so your skills will be in high demand.
When I joined Coinbase in 2017, I was one of only two PMs working on the entire consumer product across web and mobile. Our biggest customer complaint at the time was that our trading limits were too low, which was causing churn and leaving revenue on the table. I was asked to lead an effort to completely overhaul how trading worked, and the result was a 40% increase in trading volume from new customers and hundreds of millions of dollars in additional revenue.
The second reason to switch from big tech to a startup is growth.
At a big tech company, you have to put yourself in positions where you can grow, often by chasing promotions, changing teams, or finding a manager who will take a bet on you. At a startup, the opposite is true: you're forced to grow in order to survive! You'll be constantly faced with harder problems to solve that feel way beyond your comfort zone, and this will push you to develop new skills and capabilities.
At Brex, I joined as an individual contributor working on the Rewards product. Within three weeks, I was asked to take over the launch of Brex Cash, which was the number one priority for the company at the time. Within a year, I was leading the largest engineering, product, and design team at the company.
The third reason to join a startup is upside.
The tech market is volatile right now, but it's worth noting that some of the most successful startups of the last decade, like Airbnb, Uber, and Stripe, were founded during the last recession. When you join a startup, even at the series B or C stage, the options you're granted could end up being worth 10-100 times more in five to ten years' time.
I joined Coinbase when it had 200 employees and a valuation of $1.6 billion. Just four years later, my shares were worth 50 times more at the height of the IPO, and they're still worth 10 times more today. It's hard to get that same upside at a big tech company over the same period. Of course, there are plenty of risks, and many startups won't end up like Coinbase or Brex. But if you do your diligence and join a startup that's on a high-growth trajectory, the outcome could be life-changing.
So how do you pick the right startup? It's all about growth. First, pick a market that's growing quickly. Crypto and fintech were two big ones of the last decade, but there are plenty of others, like climate tech, health tech, and AI. Second, join a company that already has product-market fit and a proven growth trajectory. At pre-PMF companies, the risk of failure is higher, so you want to avoid those. And finally, look for a company that has a strong leadership team and a culture that aligns with your values.
If you're a big tech PM considering making the switch to a startup or were recently laid off and are looking for your next opportunity, here are a few places to start looking:
- YCombinator's job board: https://www.ycombinator.com/jobs/role/product-manager
- Lenny Ratichitsky's job board: https://lennys-jobs.pallet.com/jobs
- AngelList Talent: https://angel.co/jobs
Lastly, I would strongly recommend reaching out to your network of friends and coworkers who now work at startups. Every role I've taken in product since Google has been through my network, and the roles weren't even publicly listed!
P.S. If you want to learn more about how stock options work at startups, Compound has some great resources in their manual: https://manual.withcompound.com/chapters/stock-options-101
