Where to start your startup career as a fresh graduate?

University is over.

You partied hard, worked harder, and are now ready to put that degree to use and take on the world.

But you don’t want to climb the corporate ladder at some old and stodgy corporation composed of boomers who think Airtable is a piece of office furniture. No, you want to work at a startup.

And why not?

Startups are all the rage. They are on the cutting edge, both with their product offerings and company culture. Startups are changing the world, minting millionaires and billionaires, and you want to be part of the action.

But what are the risks? The benefits? Where do you start your startup career as a fresh graduate? What kind of job should you take? And should working at a startup be your first job?

We are going to break this down and more.

Let’s begin.

Understand the risks

First and foremost, you need to realize that startups are inherently risky endeavors. Before you accept the first offer that replies to you on AngelList, keep the following statistics in mind:

• Only 40% of startups are profitable, and 1/3rd of Startups continue to lose money.
• Fewer than 10% of startups that raise a seed round successfully raise a Series A investment.
• 9 out of 10 startups fail, the majority of which are before the five-year mark.

For additional global startup statistics, visit DemandSage.

Now if you are looking for long-term stability, career security, and a culture to contribute to, startups may not be ideal for you. By the time you have paid your dues and want to reap the rewards of a higher position and higher salary, the startup may be falling apart.

And speaking of paying your dues, get ready to pay in full. Startups often require longer hours, a bigger commitment, and pay less than a traditional corporate job.

Huh?

Less? But what about all those employees that became rich? This brings us to a lesson in startup compensation.

In order for you to become rich from working at a startup, the startup needs to be successful and have a liquidity event (an acquisition or an IPO). And whose job is it to make it a success?

Why, you, of course.

The success of the startup is the result of the hard work and effort from the team. But as startups are generally cash strapped, they can’t afford to compensate for the talent that will get them to that exit.

Instead, they offer a lower cash salary and equity within the company. This equity vests over a period of time, meaning that those who stay with the startup are rewarded for their years of loyal service. This allows the startup to save on expenses by not paying an immediate full-time salary at market rate.

And remember when I mentioned startups fail? All that equity is essentially worthless unless the startup is successful. Even notable startups that had valuations in the billions become utterly worthless when they failed (Theranos and Quibi are two of the biggest examples of this).

Now that you understand the risks, What about the benefits? Are there any?

Of course.

Understand the benefits

Working at a startup, especially as a fresh graduate, provides many benefits. You may already be eyeing a remote work culture and unlimited vacation, but we are going to touch on the most important.

The first major benefit is the sheer amount of learning opportunities that are available. Whereas traditional companies want hires who are specialized in a specific area, startup employees often find themselves wearing multiple hats.

Why is this the case?

Because startups have limited resources. They simply can’t afford to hire for multiple roles. So if you have a degree in marketing, don’t expect to be doing simply that. You may find yourself marketing in the morning, doing business development in the afternoon, and possibly even having a hand in cultivating the culture of the startup by the time you clock out.

So if you are a fresh graduate, you will be exposed to many different aspects of the business. And as most startups are small (less than fifty people, sometimes even just a small core team), you will be working with and learning from the founders themselves. Imagine working with Steve Jobs at Apple or Jeff Bezos at Amazon, learning valuable insights and the thought processes behind what would become the largest companies in the world. This rarely happens in a traditional corporation, where departments are segmented and the chain of command is strictly adhered to.

The second major benefit is the unprecedented responsibility you may have. As startups have small teams, employees often have to hit the ground running and make quick decisions. This isn’t for everyone (especially those who need to be guided every step of the way), but if you are capable of it, this could truly be rewarding. It gives you an opportunity to show off your skills, your work ethic, and play a major role in the growth of the company. Your performance impacts not only your title, but the company as a whole.

The third major benefit is the career acceleration that startups offer their employees. In traditional companies, it takes years to make an impact and climb the corporate ladder. But as startups move fast, you could find yourself having a prestigious role and playing a prominent part in their growth and success. In your future job hunt, your resume with the title of CTO or CMO will make you stand out from the multitude who may have not progressed as fast or as far as you.

AngelList provides this chart that expands on the benefits and many others that aren’t mentioned.