Good start-up CEOs struggle with this because many of them do care for their employees at a personal level, but they also have an obligation to the owners/investors to be financially successful. And the most findnacially successful CEOs are going to put investors first when they are up against the wall. I assume they rationalize it by saying that if the company is successful that is better in the long run for everyone.
Once you take outside funding, whether the founders “care” about their employees is irrelevant. They don’t guide the company any more. Their investors do.
If they “cared” about their employees and weren’t looking for a large exit, they would be creating a “lifestyle” business and not seek VC funding.
I’m not making a moral judgement either way. Everyone should go into any employment situation with their eyes wide open.
I agree with you but at the same time, a lot of people can't really create a lifestyle business. Yes, if you are a Senior Developer in SV, you can probably save 50k a year and then move to bumfuck Montana and start your lifestyle business, but a lot can't. I know many senior developers in my country that if they save 2000-3000 are probably in the top savers.
I already refused investment as I didn't think my goals aligned fully with the investors, but I am lucky as I don't have to pay rent (family flat) and I did some contracting that allowed me to save some money. Most of my developer friends will be fucked if their companies fire them as atm no-one will really hire them in the next few months for sure.
I’m assuming you aren’t in the US. Well I am in the US and if I lost my job in the current climate, I think I would have a hard time trying to find a job. I’ve never felt that way before - not in 2000 or 2008-2010. So your friends are far from unique. The entire global economy is screwed.
Assuming you’re trying to start a lifestyle software business, your startup costs should be cheap thanks to cloud providers or just using something like VMs.
I am not (Portugal). And I feel for you (and my friends and even myself, everyone is suffering now).
What I meant was, a lifestyle sw business, while low cost to run, means either someone having savings or a small family/friends angel investment/loan. That is why I mentioned some folks take funding because a lifestyle business is beyond their reach as they are working 40+ hours just to break even.
Exactly. I find that people who complain about shareholders or investors are literally just complaining that the business is not a not for profit.
Shareholders and investors are just a proxy for the business. If you want to use them as an excuse for lay offs - go for it - but realize that 99% of the time the decision comes down to "do I save half by firing the other half, or do we all go down with the ship?".
