Summaries Career Development Exploring the Founder Path: Why Leaving Your FAANG Job Could Be the Right Move

This is a summary of a YouTube video "Why You Should Leave Your FAANG Job" by Y Combinator!

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It is important to understand the differences between a fang job and the founder path, and to research and consider all options before making a decision.

• 🤔
  00:00

  Founders should understand the differences between a fang job and the founder path.
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  01:37

  Starting a company requires research and facts, so it's important to consider all options before jumping into a large tech company right out of college.
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  03:53

  Talking to someone doing the job is the best way to learn about opportunities to work on hard technical problems at Fangs.
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  06:02

  Unlearning processes from big companies and VCs is key to success when starting a startup.
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  08:55

  Staying at one company for a long time can be beneficial, but be aware of the potential pitfalls of equity and fundraising.
• 💰
  12:03

  People are incentivized to stay in their job longer due to equity packages and loss aversion.
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  14:14

  Talent is often locked away with no guarantee of use.
• 🤔
  15:35

  Suggest breaking up with something if it's making someone unhappy, and have a plan for when to leave when taking a job at a tech company.

Key insights

• 🤔 Talking to someone who is actually doing the job is the best way to understand what the job is really like, rather than relying on information from recruiters.
• 🛠️ Starting a startup from scratch can be challenging because you lose access to the infrastructure and tools provided by FAANG companies, requiring you to create everything from scratch.
• 💡 People often mistake the ease of raising funds for engineers at FAANG companies, assuming that VCs are actively seeking them out, when in reality, the process is not the same and unsuccessful fundraisers are rarely talked about.
• 🎁 The assumption that FAANG jobs are easily attainable and come with special perks is a misconception, as it requires hard work and is not as glamorous as people think.
• 💼 The culture of spending and lifestyle inflation among employees in FAANG companies, fueled by the perception of vesting equity as savings, makes it difficult for individuals to save money and pursue their own entrepreneurial aspirations.
• ⏳ Spending years on a moonshot project that ultimately gets shut down can be disheartening and make employees feel trapped in their roles.
• 💭 Many developers at FAANG companies secretly dream of quitting every day, indicating that they may be better off leaving their jobs.
• 🗺️ Have a plan at the start of your FAANG job, knowing what you want to accomplish and when you want to leave, to avoid getting trapped and losing sight of your goals.

Detailed summary

• 🤔
  00:00

  Founders often misunderstand the value they can extract from a fang job, as the founder path is quite different than the employee path.
• 🤔
  01:37

  Starting a company requires research and facts, so it's important to consider all options before jumping into a large tech company right out of college.

  • Working at a large tech company right out of college may be a good opportunity for employees and managers, but it's not necessarily the best option for potential founders.
  • Before starting a company, it is essential to state facts.
• 🤔
  03:53

  Talking to someone doing the job is the best way to learn about opportunities to work on hard technical problems at Fangs.

  • Most people at fangs work on mundane tasks, but there are opportunities to work on hard technical problems at large scale.
  • Talking to someone doing the job is the best way to learn what it is, as recruiters are incentivized to get you to sign up.
• 🤔
  06:02

  Unlearning processes from big companies and VCs is key to success when starting a startup.

  • Working at a big company can teach important lessons that can be applied to early stage startups.
  • When starting a startup, you have to create everything from scratch and learn how to use the tools of the big companies, which you don't get to use anymore.
  • Founders need to unlearn processes from big companies and VCs to be successful with their startups.
• 🤔
  08:55

  Staying at one company for a long time can be beneficial, but be aware of the potential pitfalls of equity and fundraising.

  • Having a long tenure at one company can be a good signal, but it can also become a negative one.
  • Don't assume that because you read about successful fundraisers, every Google engineer is raising money, as there are many unsuccessful fundraisers that go unreported.
  • Founders often don't realize how companies will use equity to retain them when they sign a contract.
• 💰
  12:03

  People are incentivized to stay in their job longer due to equity packages and loss aversion.

  • I'm feeling good with a sound equity package and well-compensated.
  • People are incentivized to stay in their job longer due to loss aversion, where they are given equity that vests over four years and are surrounded by people who are not saving money to start their own company.
• 🤔
  14:14

  Talent is often warehoused in defensive tactics to prevent it from being used by competitors, with no guarantee that the work will ever be used.
• 🤔
  15:35

  Suggest breaking up with something if it's making someone unhappy, and have a plan for when to leave when taking a job at a tech company.

  • If someone is unhappy and can't stop doing something, it may be time to suggest they break up with it.
  • Keep your personal burn low so you can quit and come back if needed, as opposed to staying in a job you don't like.
  • You can help someone break the spell of unhappiness by encouraging them to make different decisions.
  • Have a plan for what you're trying to accomplish and when you want to leave when taking a job at a tech company to avoid getting trapped.

Q&A

• What is the difference between a fang job and the founder path?

  The founder path is different from the employee path, and founders often misunderstand the value they can get from a fang job.

• Is working at a large tech company the best option for potential founders?

  Working at a large tech company may be a good opportunity for employees and managers, but it's not necessarily the best option for potential founders.

• How can I learn more about a fang job?

  Talking to someone who is already doing the job is the best way to learn about it, as recruiters may have biased incentives.

• What can working at a big company teach me for my startup?

  Working at a big company can teach important lessons that can be applied to early stage startups.

• Should I have a long tenure at one company as a founder?

  Having a long tenure at one company can be a good signal, but it can also become a negative one.