Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

Is the technical cofounder market about to loosen up with all the layoffs happening?

Hey guys,
I've been searching for a strong technical lead or technical cofounder for several months now. I've met very few great candidates, and some not so great ones, but its been a very tight market for a long time, especially in San Francisco. We have a great product (MVP+ built by a dev shop) and pilot programs ready to launch, a solid founding team of UX/UI, sales and business professionals and we've caught the ears of seed investors, but as you all know, they want to see that technical lead.

A couple of my advisers have mentioned that the string of layoffs in the valley will probably loosen things up very soon, especially for coders. Has anyone else heard or believe this or is it just wishful thinking?

8 Replies

Ken Anderson
0
0
Ken Anderson Advisor
Director, Entrepreneurial and Small Business Development, Delaware Economic Development Office
Keen observation Sankar. That's exactly what many are predicting...especially in Menlo Park, CA.
Michael Barnathan
0
0
Michael Barnathan Entrepreneur • Advisor
Co-Founder of The Mountaintop Program, Google Alum
It will, but it's happening because the funding environment is drying up...
Paul Chambers
1
0
Paul Chambers Advisor
Founder, Nymble Technology
Companies tend to hang on to their best performers, logically. You may be lucky and find someone good that has been let go because of politics or an acquisition. But the good ones tend to be snapped up quickly.

The other aspect is that you're portraying that it's all over, bar the shouting, from a technical standpoint. Not much of a challenge, and a real danger he/she would be left dealing with the consequences of other people's decisions. Worse still, the decisions of people without a stake in the outcome (the dev shop).
Joe Emison
4
0
Joe Emison Advisor
Chief Information Officer at Xceligent
As a technical cofounder, and someone who hires developers... I really don't think so. The demand for great technical talent is so high that I seriously doubt there will be enough of a drop for this to make a difference at the top tier--where you'd want to pick up a technical cofounder. If you would be a good technical cofounder, you can almost certainly get a job paying at least $300K/year in the Bay Area today. Even if that drops to $200K (highly unlikly in my opinion), it's unlikely that a technical cofounder of a seed-stage startup would get more than $150K/year (and often it's more like $75-100K, because otherwise you'll have a hard time getting that seed investment). So you're not going to be able to come close to competing on salary.

And now think about all of the other options that are available out there in companies that are growing quickly that haven't had a major exit... how are you going to compete with Slack and AirBnb, for example? The likelihood is that your startup is going to fail. Those won't, so the question is just what the equity in them will be worth. You can offer some more freedom and autonomy, but your benefits will be much worse, and the uncertainty is painful.

I would anticipate that the demand for technical talent will outstrip supply significantly for at least the next 10 years.
Rob Gropper
2
0
Rob Gropper Entrepreneur
Director at PetHero, SPC - Member at Eastside Incubator - Principal at Tuxedo Technologies Group
in general, in funding dips like this in startup land (such as in 2000 and 2008), the employable talent tends to migrate to more stable companies, either well funded startups or mature companies. So even if the competition for talent among startups decreases the reduction in funding means 2 things: 1) a migration to less risky employers and 2) the perception that your company is now even riskier due to a decrease in the odds of your company receiving funding.
Michael Barnathan
0
0
Michael Barnathan Entrepreneur • Advisor
Co-Founder of The Mountaintop Program, Google Alum
Certain areas, such as ML, are in no danger and will actually grow in the near term. You're right that top techies are in little danger, though I think we'll see a drop across the spectrum, way more severe among the bootcamp crowd. You beat the Airbnb offer with more equity and promise of greater upside! But you've got to be special to land and maintain talent over those types of employers, in addition to a significant equity offer. Because 100% of zero is zero. If you join an immediately pre-IPO company, your stock options won't be worth all that much since their optimistic IPO projections will be baked into the strike price already. Some of us have been there, done that, and have no interest in stock that would be worth $50k if the company has a $5b exit tomorrow... just way too little return for way too optimistic a case.
Noah Webster
0
0
Noah Webster Entrepreneur
Co-Founder and CEO at Joir
Top talent will always have jobs and be well paid. It's because they are top talent. When we see market dips, what gets cut off is the bottom of the barrel, or people who had some sort of conflict with their bosses. Either way, its not going to be the type of person you want as a technical co-founder. Tech co-founders will always be available. You just need to be able to make them a compelling enough offer (in terms of idea, pay, equity, whatever).
Sankar Patel
0
0
Sankar Patel Entrepreneur
Founder & CEO at UpCurrent, Advisor, Invester
Thanks for the feedback guys. Similar to the discussion here, I'm still hearing both POVs out there, next few months should be interesting.

Paul thank you for your point about tech leads wanting to be challenged. I'm learning that the pitch to tech leads needs to be very different from the story for investors who are looking to reduce risk. While a tech lead doesn't want to walk into a disaster, there needs to be a challenge and a bigger vision.

We have worked out our bigger vision with the help of some great people on Founderdating, hopefully this helps us land our tech lead. Thanks guys!
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?