FAANG Is Too Cushy? How Big Tech Engineer Founders Often Fail

Eric Bahn, a VC from Hustle Fund, talks about the common failure modes of founders who previously worked in Big Tech.

Some of the questions we discuss:
- Does success in a Big Tech job translate to founder success? Seeing how things are done "properly" in a FAANG (or equivalent) company is very valuable. However, the skills needed to start from scratch are very different.
- How Rahul thought about leaving Meta after 4.5 years to start Taro: **when you start a new product or company, no one cares about you**. It is very, very hard to get people to care about you, to even give you the time of day. That's why having distribution networks are so important.
- How long is *too* long in a Big Tech company? If you've been at a FAANG company for 6+ years, is that a negative signal for your ability to start a company? Obviously this depends on the situation, but it's important to be aware of the perception.
- What are the most common failure modes of ex-FAANG founders?

------

- Connect with [Eric on LinkedIn](https://www.linkedin.com/in/ericbahn/)
- This is a re-post from [Rahul's YouTube channel](https://youtu.be/63b6A8A3kAU)

How To Prepare To Leave Big Tech For A Startup

If you’re like [Rahul](https://www.jointaro.com/profile/tTjEXHcTZEYDGh8oUFU2Dy5VFVG2/), you were intent on leaving the bubble of Big Tech to pursue the startup life for a long time. If you have 6 months or 1 year left working in an established company, what can you do in anticipation of your startup journey?

One of the best things you can do is validate the idea of your startup with a side hustle. **Be careful that you’re not using company time or resources or you may later get sued.**

Generally, there are 3 types of projects an engineer can work on: 
1. A project purely for learning, to try out some technology or framework that may have come out recently. 
2. A small business. Also known as an indie business, a micro-Saas, or even something as simple as selling a digital product like an eBook. 
3. A VC scale startup. **This should be reserved for very few companies.** When you take venture capital money, they are looking for a massive return on investment, something like 50x or 100x. That means you’ll be accountable for strenuous growth targets.

Whichever path you choose, go in with your eyes wide open about what your motivations are and whether you’d be happy signing up for the likely outcome. 

An input into the decision about *when* to leave the Big Tech life is to look for some indication of commitment for the customers you’re serving. Are your customers offering you their time, money, or reputation for your product? That’s a promising sign. 

Another reason to leave is that you feel that there’s a narrow period of time when your idea could succeed, e.g. new regulation or a groundbreaking technology.

------

Connect with [Eric on LinkedIn](https://www.linkedin.com/in/ericbahn/)

Does Your Job Performance Matter For Building A Startup?

In college, the common wisdom these days for Computer Science students is “your grades don’t matter, just focus on your network and building cool stuff.” 

**Does the same logic apply for aspiring entrepreneurs who are working in Big Tech?**

If you know you want to leave to start a startup, how much should you focus on getting the highest ratings and quickest promotions on the job, vs just doing enough to get by?

In Eric's case, he was was content with doing just enough to get by -- his time and energy was better spent preparing for his startup. Eric was barely getting a Meets All (MA) rating at Meta, and in fact, he was about to be put on a PIP before he left!

Instead of focusing on your ratings on the job, you should instead focus on having positive relationships with the people you work with. You want them to vouch for you as someone who is trustworthy, hard-working, and easy to work with. 

**Your network is your biggest asset as a founder.** Your job is not to be the expert who knows everything. Instead, your job is to have a deep network of people (advisors, friends, employees) who you can leverage to arrive at the best decision. 

---------
Connect with [Eric on LinkedIn](https://www.linkedin.com/in/ericbahn/)

Are Big Tech Incubation Labs Good Preparation For Being A Startup Founder?

Many companies will have a skunkworks or incubation division. Meta has **New Product Experimentation (NPE)**, Google has **Area 120**, and companies like Apple, Microsoft, Oracle, and others all have toy projects. 

Despite being branded as a “startup within a big company”, there are some important differences to keep in mind between these roles and real entrepreneurship: 
- Apps launched within larger companies have a huge unfair advantage in being able to leverage the parent company’s distribution channels. 
- There’s not as much urgency or risk in these divisions since, even if the app fails, the staff will just get reallocated to other parts of the company.
- Most of these projects eventually get killed by the parent company since they’re looking for multi-billion dollar market opportunities.

Connect with [Eric](https://www.linkedin.com/in/ericbahn/)

Eric Bahn Q&A and Videos

About Eric Bahn

FAANG Is Too Cushy? How Big Tech Engineer Founders Often Fail

How To Prepare To Leave Big Tech For A Startup

Does Your Job Performance Matter For Building A Startup?

Are Big Tech Incubation Labs Good Preparation For Being A Startup Founder?