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Is it unprofessional to ask about a startup's finances in an interview? [duplicate]
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Startup vs Big Company - ok to ask for details
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For most developer positions interviews are usually 30 minutes technical talk and 10-15 minutes question time. If I would be interviewing for a large company, I would basically ask what previous projects that they have worked, how many years they worked for that company etc.
The problem with startups are, the person that you interview with is either the co-founder or the first developer who started working there. So that person would quite likely be working there since the formation. Instead, I have asked questions about multiple office locations, languages/technologies that they use for their main product, and if they are planning to develop a new product or the if following years will be based on their current product.
I am very interested to learn about a startup's finances but was never sure if it was professional to ask about their revenue and profit. For example, even if they got $2M funding, it wouldn't last anything more than 1-2 years if their team is over 10-20 people. Since I would like to work at a place I could be financially secured, I want to know information like this. But is it unprofessional to ask about a startup's finances during an interview?
interviewing startup
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
marked as duplicate by IDrinkandIKnowThings, Jim G., CincinnatiProgrammer, bethlakshmi, Elysian Fields♦ Dec 17 '13 at 16:45
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
add a comment |Â
up vote
9
down vote
favorite
This question already has an answer here:
Startup vs Big Company - ok to ask for details
6 answers
For most developer positions interviews are usually 30 minutes technical talk and 10-15 minutes question time. If I would be interviewing for a large company, I would basically ask what previous projects that they have worked, how many years they worked for that company etc.
The problem with startups are, the person that you interview with is either the co-founder or the first developer who started working there. So that person would quite likely be working there since the formation. Instead, I have asked questions about multiple office locations, languages/technologies that they use for their main product, and if they are planning to develop a new product or the if following years will be based on their current product.
I am very interested to learn about a startup's finances but was never sure if it was professional to ask about their revenue and profit. For example, even if they got $2M funding, it wouldn't last anything more than 1-2 years if their team is over 10-20 people. Since I would like to work at a place I could be financially secured, I want to know information like this. But is it unprofessional to ask about a startup's finances during an interview?
interviewing startup
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
marked as duplicate by IDrinkandIKnowThings, Jim G., CincinnatiProgrammer, bethlakshmi, Elysian Fields♦ Dec 17 '13 at 16:45
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
2
Hey Sarp, welcome to The Workplace! The core of your question is good ("Is it unprofessional to ask about a startups finances in an interview?"), there is a lot of additional information hiding the core question. Would you mind trying to edit it to focus more on that question? In the meantime, this answer may help you out.
– jmac
Dec 17 '13 at 9:22
1
Hi @jmac, I edited the title. Thanks for the heads up
– Sarp Kaya
Dec 17 '13 at 9:31
3
Related: How can I find more information about a startup? and Which questions should I ask when interviewing with a startup?
– IDrinkandIKnowThings
Dec 17 '13 at 15:47
add a comment |Â
up vote
9
down vote
favorite
up vote
9
down vote
favorite
This question already has an answer here:
Startup vs Big Company - ok to ask for details
6 answers
For most developer positions interviews are usually 30 minutes technical talk and 10-15 minutes question time. If I would be interviewing for a large company, I would basically ask what previous projects that they have worked, how many years they worked for that company etc.
The problem with startups are, the person that you interview with is either the co-founder or the first developer who started working there. So that person would quite likely be working there since the formation. Instead, I have asked questions about multiple office locations, languages/technologies that they use for their main product, and if they are planning to develop a new product or the if following years will be based on their current product.
I am very interested to learn about a startup's finances but was never sure if it was professional to ask about their revenue and profit. For example, even if they got $2M funding, it wouldn't last anything more than 1-2 years if their team is over 10-20 people. Since I would like to work at a place I could be financially secured, I want to know information like this. But is it unprofessional to ask about a startup's finances during an interview?
interviewing startup
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
This question already has an answer here:
Startup vs Big Company - ok to ask for details
6 answers
For most developer positions interviews are usually 30 minutes technical talk and 10-15 minutes question time. If I would be interviewing for a large company, I would basically ask what previous projects that they have worked, how many years they worked for that company etc.
The problem with startups are, the person that you interview with is either the co-founder or the first developer who started working there. So that person would quite likely be working there since the formation. Instead, I have asked questions about multiple office locations, languages/technologies that they use for their main product, and if they are planning to develop a new product or the if following years will be based on their current product.
I am very interested to learn about a startup's finances but was never sure if it was professional to ask about their revenue and profit. For example, even if they got $2M funding, it wouldn't last anything more than 1-2 years if their team is over 10-20 people. Since I would like to work at a place I could be financially secured, I want to know information like this. But is it unprofessional to ask about a startup's finances during an interview?
This question already has an answer here:
Startup vs Big Company - ok to ask for details
6 answers
interviewing startup
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
edited Dec 17 '13 at 16:34
jcmeloni
21.6k87393
21.6k87393
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
asked Dec 17 '13 at 8:50
Sarp Kaya
250137
250137
marked as duplicate by IDrinkandIKnowThings, Jim G., CincinnatiProgrammer, bethlakshmi, Elysian Fields♦ Dec 17 '13 at 16:45
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
marked as duplicate by IDrinkandIKnowThings, Jim G., CincinnatiProgrammer, bethlakshmi, Elysian Fields♦ Dec 17 '13 at 16:45
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
2
Hey Sarp, welcome to The Workplace! The core of your question is good ("Is it unprofessional to ask about a startups finances in an interview?"), there is a lot of additional information hiding the core question. Would you mind trying to edit it to focus more on that question? In the meantime, this answer may help you out.
– jmac
Dec 17 '13 at 9:22
1
Hi @jmac, I edited the title. Thanks for the heads up
– Sarp Kaya
Dec 17 '13 at 9:31
3
Related: How can I find more information about a startup? and Which questions should I ask when interviewing with a startup?
– IDrinkandIKnowThings
Dec 17 '13 at 15:47
add a comment |Â
2
Hey Sarp, welcome to The Workplace! The core of your question is good ("Is it unprofessional to ask about a startups finances in an interview?"), there is a lot of additional information hiding the core question. Would you mind trying to edit it to focus more on that question? In the meantime, this answer may help you out.
– jmac
Dec 17 '13 at 9:22
1
Hi @jmac, I edited the title. Thanks for the heads up
– Sarp Kaya
Dec 17 '13 at 9:31
3
Related: How can I find more information about a startup? and Which questions should I ask when interviewing with a startup?
– IDrinkandIKnowThings
Dec 17 '13 at 15:47
2
2
Hey Sarp, welcome to The Workplace! The core of your question is good ("Is it unprofessional to ask about a startups finances in an interview?"), there is a lot of additional information hiding the core question. Would you mind trying to edit it to focus more on that question? In the meantime, this answer may help you out.
– jmac
Dec 17 '13 at 9:22
Hey Sarp, welcome to The Workplace! The core of your question is good ("Is it unprofessional to ask about a startups finances in an interview?"), there is a lot of additional information hiding the core question. Would you mind trying to edit it to focus more on that question? In the meantime, this answer may help you out.
– jmac
Dec 17 '13 at 9:22
1
1
Hi @jmac, I edited the title. Thanks for the heads up
– Sarp Kaya
Dec 17 '13 at 9:31
Hi @jmac, I edited the title. Thanks for the heads up
– Sarp Kaya
Dec 17 '13 at 9:31
3
3
Related: How can I find more information about a startup? and Which questions should I ask when interviewing with a startup?
– IDrinkandIKnowThings
Dec 17 '13 at 15:47
Related: How can I find more information about a startup? and Which questions should I ask when interviewing with a startup?
– IDrinkandIKnowThings
Dec 17 '13 at 15:47
add a comment |Â
2 Answers
2
active
oldest
votes
up vote
19
down vote
It is not unprofessional to ask about finances.
When I interview for a position with a startup, I always ask the founders questions about finances. Questions I ask are typically from this list:
- what is your funding model? (VC, private investors, self-supported, etc)
- (if VC funded) who is in the funding round (so I can look up their track record later, if it's not obvious), what are the traunches, and how close are you to hitting the requirements for the next traunch
- how long is the runway, or how long at the current burn rate until you run out of money, if nothing else changes
- what is the sales model (even if you don't know a lot, or anything, about sales, you want to hear that there is one...)
- what is the hiring plan (if you hear lots of numbers thrown around for hiring, but there's not enough runway to support that, that's potentially an issue).
When I interview people when I'm working for a startup (such as I am now), I expect to hear some question along these lines even though I'm not a founder. It doesn't exclude a person from candidacy if they don't ask, but when they do ask it tells me that they have some experience working for a startup or at least understand that financial situations can sometimes be tenuous. It adds a point for me to their "environmental awareness" score.
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
add a comment |Â
up vote
5
down vote
I think to ask a new company "how are you funded" is a reasonable and professional question - if you throw in your lot with the company you need reassurance that they can pay you (less of an issue with existing companies that have a proven business model since there you can judge for yourself if they look solid). However hardly any company would discuss projected revenue flow with their developers, let alone with people who are not even hired yet, so you should not expect (and IMO not ask for) financial details.
As for your other questions, if startups are not prepared to answer them it's not because their are the wrong questions, they are probably the wrong startups (i.e. any responsible employer should be able to anwser those).
But then I think you should not expect too much job security from most startups (apologies to all those well-funded, well planned startups of which there are many). As far as I have experienced working for startups is more a bit of a gamble, where you should negotiate a large reward if things go well, but where failure is always an option ( I'll admit that my personal experience is a bit dated, though).
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
2
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
19
down vote
It is not unprofessional to ask about finances.
When I interview for a position with a startup, I always ask the founders questions about finances. Questions I ask are typically from this list:
- what is your funding model? (VC, private investors, self-supported, etc)
- (if VC funded) who is in the funding round (so I can look up their track record later, if it's not obvious), what are the traunches, and how close are you to hitting the requirements for the next traunch
- how long is the runway, or how long at the current burn rate until you run out of money, if nothing else changes
- what is the sales model (even if you don't know a lot, or anything, about sales, you want to hear that there is one...)
- what is the hiring plan (if you hear lots of numbers thrown around for hiring, but there's not enough runway to support that, that's potentially an issue).
When I interview people when I'm working for a startup (such as I am now), I expect to hear some question along these lines even though I'm not a founder. It doesn't exclude a person from candidacy if they don't ask, but when they do ask it tells me that they have some experience working for a startup or at least understand that financial situations can sometimes be tenuous. It adds a point for me to their "environmental awareness" score.
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
add a comment |Â
up vote
19
down vote
It is not unprofessional to ask about finances.
When I interview for a position with a startup, I always ask the founders questions about finances. Questions I ask are typically from this list:
- what is your funding model? (VC, private investors, self-supported, etc)
- (if VC funded) who is in the funding round (so I can look up their track record later, if it's not obvious), what are the traunches, and how close are you to hitting the requirements for the next traunch
- how long is the runway, or how long at the current burn rate until you run out of money, if nothing else changes
- what is the sales model (even if you don't know a lot, or anything, about sales, you want to hear that there is one...)
- what is the hiring plan (if you hear lots of numbers thrown around for hiring, but there's not enough runway to support that, that's potentially an issue).
When I interview people when I'm working for a startup (such as I am now), I expect to hear some question along these lines even though I'm not a founder. It doesn't exclude a person from candidacy if they don't ask, but when they do ask it tells me that they have some experience working for a startup or at least understand that financial situations can sometimes be tenuous. It adds a point for me to their "environmental awareness" score.
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
add a comment |Â
up vote
19
down vote
up vote
19
down vote
It is not unprofessional to ask about finances.
When I interview for a position with a startup, I always ask the founders questions about finances. Questions I ask are typically from this list:
- what is your funding model? (VC, private investors, self-supported, etc)
- (if VC funded) who is in the funding round (so I can look up their track record later, if it's not obvious), what are the traunches, and how close are you to hitting the requirements for the next traunch
- how long is the runway, or how long at the current burn rate until you run out of money, if nothing else changes
- what is the sales model (even if you don't know a lot, or anything, about sales, you want to hear that there is one...)
- what is the hiring plan (if you hear lots of numbers thrown around for hiring, but there's not enough runway to support that, that's potentially an issue).
When I interview people when I'm working for a startup (such as I am now), I expect to hear some question along these lines even though I'm not a founder. It doesn't exclude a person from candidacy if they don't ask, but when they do ask it tells me that they have some experience working for a startup or at least understand that financial situations can sometimes be tenuous. It adds a point for me to their "environmental awareness" score.
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
It is not unprofessional to ask about finances.
When I interview for a position with a startup, I always ask the founders questions about finances. Questions I ask are typically from this list:
- what is your funding model? (VC, private investors, self-supported, etc)
- (if VC funded) who is in the funding round (so I can look up their track record later, if it's not obvious), what are the traunches, and how close are you to hitting the requirements for the next traunch
- how long is the runway, or how long at the current burn rate until you run out of money, if nothing else changes
- what is the sales model (even if you don't know a lot, or anything, about sales, you want to hear that there is one...)
- what is the hiring plan (if you hear lots of numbers thrown around for hiring, but there's not enough runway to support that, that's potentially an issue).
When I interview people when I'm working for a startup (such as I am now), I expect to hear some question along these lines even though I'm not a founder. It doesn't exclude a person from candidacy if they don't ask, but when they do ask it tells me that they have some experience working for a startup or at least understand that financial situations can sometimes be tenuous. It adds a point for me to their "environmental awareness" score.
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
edited Dec 17 '13 at 13:39
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
answered Dec 17 '13 at 11:36
jcmeloni
21.6k87393
21.6k87393
add a comment |Â
add a comment |Â
up vote
5
down vote
I think to ask a new company "how are you funded" is a reasonable and professional question - if you throw in your lot with the company you need reassurance that they can pay you (less of an issue with existing companies that have a proven business model since there you can judge for yourself if they look solid). However hardly any company would discuss projected revenue flow with their developers, let alone with people who are not even hired yet, so you should not expect (and IMO not ask for) financial details.
As for your other questions, if startups are not prepared to answer them it's not because their are the wrong questions, they are probably the wrong startups (i.e. any responsible employer should be able to anwser those).
But then I think you should not expect too much job security from most startups (apologies to all those well-funded, well planned startups of which there are many). As far as I have experienced working for startups is more a bit of a gamble, where you should negotiate a large reward if things go well, but where failure is always an option ( I'll admit that my personal experience is a bit dated, though).
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
2
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
add a comment |Â
up vote
5
down vote
I think to ask a new company "how are you funded" is a reasonable and professional question - if you throw in your lot with the company you need reassurance that they can pay you (less of an issue with existing companies that have a proven business model since there you can judge for yourself if they look solid). However hardly any company would discuss projected revenue flow with their developers, let alone with people who are not even hired yet, so you should not expect (and IMO not ask for) financial details.
As for your other questions, if startups are not prepared to answer them it's not because their are the wrong questions, they are probably the wrong startups (i.e. any responsible employer should be able to anwser those).
But then I think you should not expect too much job security from most startups (apologies to all those well-funded, well planned startups of which there are many). As far as I have experienced working for startups is more a bit of a gamble, where you should negotiate a large reward if things go well, but where failure is always an option ( I'll admit that my personal experience is a bit dated, though).
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
2
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
add a comment |Â
up vote
5
down vote
up vote
5
down vote
I think to ask a new company "how are you funded" is a reasonable and professional question - if you throw in your lot with the company you need reassurance that they can pay you (less of an issue with existing companies that have a proven business model since there you can judge for yourself if they look solid). However hardly any company would discuss projected revenue flow with their developers, let alone with people who are not even hired yet, so you should not expect (and IMO not ask for) financial details.
As for your other questions, if startups are not prepared to answer them it's not because their are the wrong questions, they are probably the wrong startups (i.e. any responsible employer should be able to anwser those).
But then I think you should not expect too much job security from most startups (apologies to all those well-funded, well planned startups of which there are many). As far as I have experienced working for startups is more a bit of a gamble, where you should negotiate a large reward if things go well, but where failure is always an option ( I'll admit that my personal experience is a bit dated, though).
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
I think to ask a new company "how are you funded" is a reasonable and professional question - if you throw in your lot with the company you need reassurance that they can pay you (less of an issue with existing companies that have a proven business model since there you can judge for yourself if they look solid). However hardly any company would discuss projected revenue flow with their developers, let alone with people who are not even hired yet, so you should not expect (and IMO not ask for) financial details.
As for your other questions, if startups are not prepared to answer them it's not because their are the wrong questions, they are probably the wrong startups (i.e. any responsible employer should be able to anwser those).
But then I think you should not expect too much job security from most startups (apologies to all those well-funded, well planned startups of which there are many). As far as I have experienced working for startups is more a bit of a gamble, where you should negotiate a large reward if things go well, but where failure is always an option ( I'll admit that my personal experience is a bit dated, though).
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
answered Dec 17 '13 at 11:03
Eike Pierstorff
1,95911214
1,95911214
2
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
add a comment |Â
2
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
2
2
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
You pretty much nailed it with the uncertainty factor. Usually the reward of working at a start-up from early on in their history is having a shot at cashing when the company goes public, and than happens only for 1 in 10000 companies. You essentially become a co-investor in a high risk project.
– Onno
Dec 17 '13 at 11:26
add a comment |Â
2
Hey Sarp, welcome to The Workplace! The core of your question is good ("Is it unprofessional to ask about a startups finances in an interview?"), there is a lot of additional information hiding the core question. Would you mind trying to edit it to focus more on that question? In the meantime, this answer may help you out.
– jmac
Dec 17 '13 at 9:22
1
Hi @jmac, I edited the title. Thanks for the heads up
– Sarp Kaya
Dec 17 '13 at 9:31
3
Related: How can I find more information about a startup? and Which questions should I ask when interviewing with a startup?
– IDrinkandIKnowThings
Dec 17 '13 at 15:47