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Money and Finances
Reply to "Husband wants to take a huge paycut to join a startup"
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[quote=Anonymous][quote=Anonymous]I'd be very wary of startups in the DC area. Many more of them look like Living Social than AOL. When you see the Class A office space, the cold brew coffee, and the VC money, you should in general run the other way. Seems like success definition for most startups around here is funding, not exits. [/quote] The key questions that I've asked of startups to see if they're "for real": (1) VC/PE funding round; (2) burn rate of funding; and (3) firm date on going cash-flow positive. Perks are nice to attract talent, but you should also keep track of how the executives are spending money on themselves. Potential Red Flags: Executives with none of their own money invested? (ding) First class travel? (ding) Well-appointed individual offices? (ding) Luxury cars leased through the company? (ding) No "adult" in the executive ranks? (ding) CFO without big company experience and a little grey hair (ding)[/quote]
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