1000 Ways to Die in a Startup

Lessons from a Recovered Victim

Author

Maryann Kabiru
October 23, 2024

Welcome to The Afro Pivot Point

Showing You What’s Art and What’s Not in African Tech

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Before we get to today’s banger, some great news!

The Latitude59 Pitch Competition is back in Kenya, this time bigger and better! Last year, Chumz.io won and has since reached 200,000 users in Kenya!

Now it’s your turn! Latitude59 is seeking the boldest early-stage African startups to compete.

Finalists will receive professional pitch training and mentorship, and they'll present at the Latitude59 Kenya Edition 2024 on November 28 at the A.S.K Dome in Nairobi.

One lucky startup will get an invitation to the semi-finals of Latitude59 2025 in Tallinn, Estonia—costs covered!

Apply here by November 1st.

Btw if today's edition resonates with you, your startup may just be a key candidate.

Now, let’s get into it.

Tech is (finally) hiring again! Congrats if you’ve survived the layoffs and AI hasn’t replaced you somehow! It’s also Q4, aka the hiring season. Most of you will be switching jobs or join the work force for the very first time. Given the current landscape, it’s quite certain that some of you will find themselves working at a startup.

And as much as I love startups, I know (firsthand) how much working at one can be exhausting on your mental and financial health.  So today I will draw from my personal experiences and talk about things you should (probably) know before working at a startup, how to know that startup will pay you, and what to do if your startup suddenly stops paying you.

This is for the underdogs ❤️

As always, remember to subscribe if you like the piece (Or me as a person. A win is a win)!

We all have our different reasons and paths that led us to tech. For some, it’s because you joined a tech bootcamp that guaranteed you'll be earning $10,000 after mastering Java Script in just 3 months. Maybe it was the Day-In-The Life vlogs from Big Tech workers that made you quit your customer service job with disdain and pursue tech because you knew you deserved better.

But that was before the layoffs and AI disrupted how we approach working in tech. Whatever your reality has been working in tech so far, I hope that you are somehow thriving and are already making plans for your 2025.

 

The reality is that not all of us can work in Big Tech. Startups are the backbone of the industry—but working at one isn’t always a party if we’re being honest. Apart from the usual teething problems that face companies in the early stages, an almost universally accepted reality of working at a startup is that at some point, you will either:

1 Work for free without your full consent or,

2. Have your salary delayed, sometimes for months on end.

I specifically chose to focus on these two scenarios because I have lived them, and because I understand that not everyone has the luxury of working for free for months.

I also know that you can love your job to death, but also struggle with paying bills on time because of delayed salaries.

 

I know how hope can be fickle in these times, and how being pragmatic can feel exhausting. If this is your current reality, I hope that you find strength to rise above it. And as you plan your next move, here is how you can know if a startup will pay you before deciding to join:

These are the red flags, baby.

First, there’s absolutely nothing wrong with being in tech for the money. “Some men just want to watch the world burn.” So it’s okay to join a startup for practical reasons like paying rent. It doesn’t always have to be about changing the world—so you do not have to romanticize it. Once you kill all these fantasies, then it is easier to be pragmatic.

The truth is that 70% of startups fail. Most early stage startups can’t afford to pay employees the full market rate. And when they do, then every coin will literally cost the employee blood, sweat, and tears.

Employees at startups are often quite early in their career—so it's normal that ambitious founders would capitalize on your desperation. The job ad is likely to include an insane job description that would ideally be a whole department’s work. Some are honest about being unfunded from the start, so you really can’t fault the founders of these companies should you decide to go in with this mind.

During the interview, an (unfunded) founder who’s highly unlikely to pay you will often say things like, “We’re working on a “revolutionary” product here. I can’t say much but we’ll change the world.” “We’ve received so many applications but we are only paying with equity at the moment.”

Once you hear these things at interview, be sure to dig deeper. Do not take anything at face value. Ask about their current fundraising goals. Ask about the other employees in the company and the kind of arrangements they have in place. Is the whole onboarding process streamlined enough for new employees to thrive?

Do the founders understand what the company is about and what they are working on—or is it just a buzzword contest where they spit out words like AI and blockchain and interoperability? Are these founders people you can trust to lead you to battle?

Btw, startup equity is ABSOLUTELY worthless until they either exit successfully; go through a merger and acquisition, or in the rarest circumstance, IPO.

Be honest with yourself and know where you are currently at in your career and exactly what you need in the moment to move forward. If you can survive being unpaid to gain exposure and experience, then by all means do.

If you’re not in a position to, you can negotiate with the company (WFH arrangements, internet, transport, access to events etc), or you can walk. Either way, know that there are less qualified people than you, who are earning more just coz they refuse to settle for less.

And if you’re a lucky founder who somehow manages to convince brilliant people to work for free, then you should probably make peace with the fact that:

  • You cannot demand, you can only beg for timeliness and quality work.

  • If you do not have money to hire specialists, you need to learn the skill and do it yourself.

Deep down, you know very well that you are not the next unicorn—so let’s cut it. Also, have you seen the price of milk?

“Well, I’m already in it”

But maybe you did due diligence, joined a good company, and have been having the time of your life. Recently though, your company suffered some setbacks and somehow, the finance guy is always traveling at precisely end month. And even after working for free, you're still not the employee of the year.


How I approached such situations was by first understanding the severity to the best of my knowledge. Ask around. What are your colleagues saying about this? Document all communication with the company leaders and seek legal counsel should you need to.

What alternatives are there?

Read the fine print

Listen to what the leaders are saying in meetings beyond the vanity metrics. Are they communicating enthusiastically on the goals for the business? Do you think their revenue model will make sense in the short-term knowing what you know so far about the company?

What kind of team do they have—and is this team qualified to meet these goals? Is the product or service viable enough to find a customer base that can meet these goals? Would you invest in the company if you were a VC?

What kind of leader is this? How are they reacting when their authority is challenged? If they're a serial founder, research their history. What happened to their previous ventures?

But should you start looking for opportunities, ensure you remain diligent and meet your deliverables in case it is used against you at some point. Guerilla tactics like accumulating insane technical debt can actually work against you so be careful with that. Just know the glass is half full and you can drink something. 

 I’ll see you in court

In the worst case scenario, you can pursue legal means if you have a falling out due to the terms of payment (which is why you should document everything). Always know that the law is there to serve you and that change in our ecosystem will begin with one person who decides to make a lesson out of a bully.

So when they start intimidating you, Better call Saul and have him get you the best deal out of that mess. Never underestimate the power of the law. I really wish I knew this sooner. Maintain your composure, and do not fall into the traps they may set for you legally.

Also, know that working for free isn’t the only way to get experience and exposure. You can always work on your own projects. You can choose to build your personal brand, and you can choose to turn your lemons into lemonade like I did.

I trust you’ll choose what works for you. And in all that, always remember that you are the prize.

May the force be with you as you chase the bag!

PS: ICYMI, Senator, we (finally) run ads. Hit my DMS and let’s talk about how I can help you meet your business goals. 

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Till next time, cheers!