Jeff Bussgang

A 4-step guide to landing a startup job

April 3, 2013: 3:14 PM ET

Aim high, seek out key networking meetings, and pick yourself a winner.

By Jeff Bussgang

FORTUNE -- My first time jumping into the startup world was as a freshly minted Harvard MBA in 1995. As my classmates were rushing off to high-paying, high-powered jobs on Wall Street, I joined a Series A startup with 30 employees as a product manager, making $65,000 per year - lower than my pre-MBA salary at management consultancy The Boston Consulting Group. Since then I've had a terrific ride, but I often think of that fateful decision when I get asked, repeatedly, by other freshly minted MBAs:  "How do I get a job in a startup?" Or, more generally, "How do I even begin to find and assess startup job opportunities - I don't even know where to start?"

The startup universe is a large one and can seem overwhelming and impenetrable to the uninitiated. In order to narrow things down, I recommend following a simple, four-step heuristic. Here's the advice I give:

  • Pick a Domain. First, figure out your passion in terms of domain. Are you more of a B2C type or a B2B type? What blogs are you reading? What articles in Techcrunch or the Wall Street Journal capture your attention?  What companies are your dream companies to work for? Answering these questions will help narrow down a set of domains that you are excited about. It can be more than one, but it shouldn't be more than, say, three.
  • Pick a City.  Next, figure out where you want to live. Again, there may be multiple options, but ideally one or two favorites. Each startup community has its own plusses and minuses, quirks and idiosyncracies. I find that once young people choose a particular startup community, they stay there. It's a natural phenomenon - they build relationships over time that lead to one opportunity after the next. Your co-workers in one startup become your co-founders in another. Thus, young professionals should be thoughtful about choosing a city early in their career because of this "settling in" phenomenon.
  • Pick a Stage.  Next, determine what stage company you prefer to work in. Do you want a company that is still in the jungle phase (hacking through and trying to establish a path to success), the dirt road phase (established initial product-market fit and now trying to execute and scale in a relatively clear direction) or the highway phase (optimizing and scaling along a well-trod path)? This decision should be made somewhat based on risk appetite and somewhat on personal makeup and preferences. If you are a risk-taker and enjoy the challenges and roller-coaster ride, then the jungle phase is for you and you should bias towards seed funded or recently Series A funded companies that are pre-revenue. If you are more conservative, want a good salary and prefer to pick a "safe" winner, then a highway phase company that is pre-IPO or recently IPO'ed is the right choice.
  • Pick a Winner.  Now that you have your target domain, geography and stage, focus on picking out a few winners - the hot companies that everyone thinks have great momentum and potential. After all, why would you want to work for anyone other than the absolute hottest company in a given category? How does an outsider figure out who the winners are in a given domain, market and stage? Ask a handful of insiders. Find the top 3 VCs, angels, tech lawyers and headhunters in your target geographical market and ask them for the two or three hottest companies that match the domain and stage you are interested in. Compile this list, pressure test it, and see what patterns you find. The firms who get the most mentions with the most compelling underlying evidence will naturally rise to the top.

Below is a sample chart that I put together answering the question for someone interested in either e-commerce, mobile or SaaS companies in SF/SV, NYC or Boston. The first company listed is an earlier stage company (either jungle or dirt road) and the second company is a later stage company (either dirt road or highway).  This list is illustrative - just to make the point - not in any way attempting to be comprehensive.

MBA blog 3-31-13
(full disclosure:  tracx, 10gen and Savingstar are Flybridge portfolio companies)

Once this heuristic is complete, you now have your target list. The next step is to get warm introductions to the target. This is easier than you would think. LinkedIn is an incredibly powerful tool, as are the various alumni databases. VCs are often happy to pass along your resume and background to their portfolio companies - after all, they are doing them a favor by sending them highly qualified talent.

In general, the startup community is so incredibly generous with its time and has such a strong "pay it forward" culture, that with tenacity and time, you can get to almost anyone. In fact, I recommended you aim high. Use this heuristic to narrow down your search and then list out the 10 people that would be your absolute top choices to sit down for 30 minutes with face to face. Then, go after those 10 people in any way you can (without stalking them or being a nudge!). These networking meetings will help you establish valuable relationships, even if the job fit isn't there.

In short, be organized, focused and tenacious. Aim high, seek out the incremental networking meetings and pick yourself out a winner. Things may not work out, but at least you're putting yourself in a position for a little positive serendipity.

Jeff Bussgang is general partner at venture capital firm Flybridge Capital Partners. You can follow him on Twitter @bussgang

  • Scaling is hard: The Akamai case study

    By Jeff Bussgang, contributor

    The Lean Start-Up movement, as exemplified in Eric Ries' book The Lean Start-Up, has appropriately focused a great deal of attention on the hard decisions and techniques required to create a company from nothing.

    But once the company has honed in on a strong value proposition and found initial product-market fit, what is the best approach to scaling it? And what lessons can be applied to the early MORE

    Aug 7, 2012 10:37 AM ET
  • Activist vs. passive seed investors

    Some seed investors are becoming more involved.

    By Jeff Bussgang, contributor

    When I entered the VC business 10 years ago, I tried to keep thinking about venture capital as a business, where the key focus area was on meeting the needs of our target customers -- entrepreneurs and limited partner investors.

    In the case of entrepreneurs, those needs have changed radically in these last 10 years.  The surge in seed investing has been well-reported MORE

    Apr 30, 2012 8:32 AM ET
    Posted in:
  • A Democrat's defense of Romney and Bain

    By Jeff Bussgang, contributor

    I am a card-carrying Democrat and supporter of President Obama. I will vote for him again in November.

    But the attacks against Mitt Romney's record at Bain Capital - by both his Republican brethren and by Democrats - and the demonization of the private equity industry are really starting to annoy me. I won't vote for him for president based on his policies and the policies of the MORE

    Jan 14, 2012 1:06 PM ET
  • Scaling is hard

    By Jeff Bussgang, contributor

    At the onset of 2012, many start-up executives are sticking their copy of Lean Start-Up on the shelf, leaning back and bemoaning the fact that they have a new set of challenges ahead of them. Although there is a plethora of advice now being given about how to find product-market fit for your fledging start-up, there's a dirty little secret out there: Once you've achieved product-market fit, the hard MORE

    Jan 11, 2012 3:05 PM ET
  • Startup lessons from the global debt crisis

    What entrepreneurs can learn from the global debt crisis

    By Jeff Bussgang, contributor

    "I used to think if there was reincarnation, I wanted to come back as the President or the Pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everyone." --James Carville

    The news out of Europe just goes from bad to worse. With debt levels so high and confidence in government MORE

    Nov 21, 2011 1:34 PM ET
    Posted in:
  • Top 5 scaling lessons from superhero CEOs

    By Jeff Bussgang, contributor

    Scott Kirsner of The Boston Globe called them the startup equivalent of the Justice League of America. Six superhero CEOs gathered on Friday afternoon at the Mass TLC Unconference to discuss the challenges of scaling their young companies. The CEOs on the panel were (from left to right):

    Michael Simon, CEO/founder of LogMeIn (LOGM) Scott Griffith, CEO ZipCar (ZIP) Gail Goodman, CEO Constant Contact (CTCT) Niraj Shah, CEO/cofounder of Wayfair ($500m MORE

    Nov 1, 2011 7:38 AM ET
  • Peace through entrepreneurship?

    By Jeff Bussgang, contributor

    A few days before Yom Kippur, the holiest day of the year in the Jewish calendar and a spiritual day of remembrance, I found myself in front of ten Palestinian tech CEOs talking about entrepreneurship. At the end of the session, they invited me to meet with Palestinian President Abbas to advise him on how to build a thriving IT sector (which now employs 3,500 across 300 MORE

    - Oct 13, 2011 12:06 PM ET
  • Entrepreneur-friendly policies (finally) showing promise

    By Jeff Bussgang, contributor

    The policy conversation regarding jobs and economic development is starting to show some promising signs, particularly in helping young companies flourish. That the entrepreneurial ecosystem is critical to job creation should be obvious, but there remains a misperception that small businesses create jobs. In truth, it's not small business that represents the country's job engine. It's new businesses. The Kauffman Foundation's research on this matter is clear: MORE

    Oct 3, 2011 10:09 AM ET
  • Why VCs invest in pigs, not chickens

    There are two types of entrepreneurs: Chickens and pigs. We want the latter.

    By Jeff Bussgang, contributor

    There is an old parable about commitment when it comes to breakfast. The story goes that when looking at a plate of ham and eggs, it's obvious that the chicken is an interested party, but the pig is truly committed.

    Lately I've been thinking about the parable of the pig and the chicken in the context MORE

    Sep 12, 2011 7:32 AM ET
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.