Lifecycle stage: Pre-Seed

Risk: High

There is a very real chance that a pre-seed startup will run out of money and die before it manages to find product/market fit, or reaches a sustainable level of growth and/or revenue.

Work environment: Creative, fast-paced, energetic, high-stress

Time and money are in very limited supply and there is a strong need to come up with an idea that could reach product/market fit. Ideas can be challenged and changed on a day-to-day basis which can be exciting, but some people will not enjoy the frequent changes in direction and lack of stability.

Suited to: Generalists

The team will be very small so people will have to pick up any work that needs to be done, regardless of whether it falls strictly within their job description. Your day-to-day work can vary widely, which some people will enjoy.

Range of roles available: Low

A pre-seed startup will be focused on getting a product or prototype built so they will mainly need people in engineering and product-focused roles. It’s very unlikely they will have any business development, corporate development, support or operations positions.

Compensation: Low

The startup is probably pre-funding so will usually offer lower salaries backed by stock options and/or equity. It’s important to remember that equity and options are only valuable if a company eventually exits, and at the pre-seed stage the chances of this happening are very low.

Experience building opportunity: Medium

You’ll have the opportunity to tackle projects and tasks that would normally be above your formal job description or title, which can be a great way to build up experience. But the lack of organizational structure means it can be harder to get feedback or support, and you’ll generally be expected to try and resolve any issues yourself.

Career progression: Low/Medium

If you can move and adapt as quickly as your company then you may be able to “ride the wave” and grow with the company (assuming it makes it past the pre-seed stage!). But in many cases, as companies grow the early employees find that their generalist, do-it-all style falls out of favor as the organization starts to add processes and structure, and hire specialists for each role.

Conclusion

As a very early hire you are taking on a large amount of risk, but will usually have much less potential financial upside than founders or early investors.

You will be exposed to a wide range of tasks and responsibilities that might not normally be available to people with your experience level, so the roles can be a good stepping stone for people with some industry experience who are looking to level up quickly.

You will usually be expected to work independently and without direct management supervision so the roles are not ideal for people who are new to the industry and would benefit from guidance and mentorship.