Valuation at the expense of your startup culture is not a good experience.
In the world of startups, company valuation is often seen as the holy grail.
Founders work tirelessly to raise funding and increase their valuation, hoping to attract more investors and build a successful company.
But what happens when this focus on valuation comes at the cost of losing your first 10 engineers?
The Importance of Your First 10 Engineers
Your first 10 engineers are the ones who help you build your product from scratch. They are the ones who take a chance on your company when it’s just an idea and a few lines of code. They are the ones who work long hours, pour their hearts and souls into the code, and help you bring your vision to life.
These engineers are crucial to the success of your company. They have institutional knowledge that can’t be replaced, and they often train new engineers and help them get up to speed.
Losing your first 10 engineers can greatly blow your company’s productivity and morale.
Valuation vs. Startup Culture
The problem with the focus on valuation is that it can come at the cost of your startup culture. When a company is hyper-focused on raising funding and increasing its valuation, it can lead to a culture of overwork and burnout.
Engineers may feel pressured to work long hours and sacrifice their personal lives to meet deadlines and keep investors happy.
This kind of culture can be demoralizing for engineers. They may feel their work is not valued or that they are replaceable cogs in the machine.
The Cost of Losing Your First 10 Engineers
When a company loses its first 10 engineers, it can ripple effect on the rest of the team.
New hires may struggle to get up to speed without the guidance and institutional knowledge of the original team members.
Morale can suffer, and productivity can decline. This can ultimately hurt the company’s valuation, as investors may start to see red flags.
A Better Approach
So what’s the solution? Rather than focusing solely on valuation, companies should prioritize engineers’ satisfaction and well-being.
This means creating a culture that values work-life balance, promotes mental health, and fosters community and collaboration among team members.
Investing in the happiness and productivity of your first 10 engineers can create a strong foundation for your company’s success.
These engineers will be more likely to stick around, train new hires effectively, and help your company grow sustainably.