Opinion on taking a job offer in San Jose, coming from out of state (Berkeley: sale, 2014)

[mars77]

Hello all, first post here, I've been reading a lot on this forum and hope to get some opinions.

Background story, a few years ago I worked on a startup, 4th employee, got about 200k options. Fast forward to today, startup got Series A, purchase agreement to a certain volume of units, etc etc. I give this startup about 70% chances of success. They have a product that works and a large company behind them with exclusivity rights and a purchase agreement.

Here comes the dilemma. I am currently employed by a very large and known corporation and living very comfortably in the midwest. I live in a very nice city, in a comfortably large house, I enjoy my yard, my friendly neighbors, my community, etc. But startup guys have asked me to join them. They say it is in my best interest to make sure that the company succeeds. And here is the problem: they insist that I move to San Jose.

I have been to San Jose many times while developing the product. I have read a lot of things about San Jose and California, in this forum and other places, and I can say with certainty that I do not think I would like to live in San Jose or anywhere in California. While you guys have great scenery, lots of cultural things, etc, I still enjoy my midwest freedom, our more reasonable laws and regulations, and the cost of living. People here can live off $30K (I currently make $100K), I live 15 minutes from downtown in a very nice $180K house paying a $1200 mortgage. My commute to work is 20mins during rush hour. I certainly know that San Jose or California in general is nowhere close to this.

So:

Option 1: Leave my current comfortable job, ditch all my comfortable life and try to make it work in San Jose, move there and take the risk. Offered salary of $130K, try to buy a house, use all of my savings to put a 20% down (if that even gets me in a house)

Option 2: Leave my current comfortable job but stay in my city, fly to San Jose and stay 3 weeks out of 4 renting an apartment. Come back for 1 week per month to visit my family. This is until startup succeeds (if), cash options, return to midwest and raise cows.

Option 3: Ditch the startup, Series A is no indication of guaranteed success. Best case they succeed on their own and I get to cash the already earned options. Worst case they fail but I still have a comfortable life and job.

I am personally between 2 and 3. I think option 1 is out since I do not like California lifestyle. I would appreciate any opinions you might have on the subject. I have never been through something like this and have no one to ask where I live. Thanks much!

[Nell Plotts]

I would opt for #2.

Have a long talk with your current management so that your departure won't cause issues for them and optimize your chances of returning to the firm if the startup doesn't work out.

I am not sure that the cattle or dairy business will be a winner but that is a decision for another day.

[bobby_guz_man]

I'd say 2. Take the risk, this could be your ticket to an awesome early retirement!

[jbunniii]

Originally Posted by mars77

Option 3: Ditch the startup, Series A is no indication of guaranteed success. Best case they succeed on their own and I get to cash the already earned options. Worst case they fail but I still have a comfortable life and job.

This might be the best option (no pun intended), if they don't dilute your shares down to nothing between now and the cash-out event.

I worked at a startup that made it to series H and very nearly failed anyway. They did eventually IPO and I made a nice chunk of cash, but not enough to retire.

I worked at another startup that made it through several rounds, ran out of money, got acquired at a fire sale price, and employees (let alone former employees who bought their vested shares, including me) got nothing.

There are no guarantees.

[mars77]

Thanks for the replies. I was hoping that someone would talk about option 3. Option 2 sounds ideal if I were to succeed but as jbuniii says, there are no guarantees. It might all die, I might end up with nothing and wasted a ton of effort and time separated from my family for nothing. I do not think joining them will increase chances of success, I think beyond the technical feasibility point, it is all in the hands of management and investors, neither of which I have any influence. The salary they offer is bad, relo to San Jose is a nightmare, and I already have stock options. I have nothing to win, a lot to lose.
Thanks all, I'll do some more thinking and give them an answer this week.

[otterprods]

Looks like a pretty obvious decision if you re-read what you wrote:

Originally Posted by mars77

I am currently employed by a very large and known corporation and living very comfortably in the midwest. I live in a very nice city, in a comfortably large house, I enjoy my yard, my friendly neighbors, my community, etc. But startup guys have asked me to join them. They say it is in my best interest to make sure that the company succeeds. And here is the problem: they insist that I move to San Jose.

It sounds like you and and your family have a lot more to lose by moving than your startup bros do if you stay. … since you asked. So, yeah, I guess option 3. IMO, NO job is worth having to leave your family for, even if it's just for a week out of the month, but some people prefer that kind of thing.

[thetrb]

My opinion:

If the startup really wants you then tell them that they should let you work remotely. Offer them to fly to San Jose from time to time (maybe 1 week each month).

If they don't go for that then go with option 3.

[NoMoreSnowForMe]

Option 3 all the way.

They can't live without you, but they can only pay you $130,000? Get real.

My daughter works as a systems analyst at UC Berkeley and makes $112,000.

Tell them good luck, you're happy just the way you are.

This is a form of gambling, and you have way too much to lose.

If you hated a significant part of your life, then it might make sense. But, you love your life. So why mess with it? Because they want you, they need you? They MIGHT make you rich? And if they don't? And you gave up your job?

This one is not worth it. Say no. IMO.

And trust me, I've told plenty of posters that they should ditch it all and come to CA, so I'm not one to always say to stay where you are. But in your case, I really think you should stay where you are. You have it all right now, truly. Good job, good neighbors, etc., etc., etc. And you don't like San Jose.

I really don't see any good reason to choose any other option than Option 3.

Congrats to you for creating such a lovely life for yourself. Good on you.

[80skeys]

This is a financial decision, do the calculations.

1. how much cash you'll have from stock options if you work for the startup, and how likely this is to happen, and how long it will take (reasonable guess)

2. how much cash you'll have from stock options if you don't take the San Jose offer (it's not clear how much you are already vested) + how much cash you can save from your current job in the same timeframe as #1

Whichever one is substantially larger, choose that

[mars77]

You are all right with arguments for option 3. What drives me to option 2 is that even though I am comfortable now, I know that nothing lasts forever. For me there are two ways to fail in a professional career: 1) make the wrong moves, or 2) don't make any moves at all.

Funny thing today in my comfortable job in a very large corporation, I got an email saying that all spending needs to be frozen until 3Q. I am used to get this by 4Q when finance need to close their yearly numbers, but getting this at the middle of 2Q is bad. The talks of layoffs resurfaced again. Nowadays, even a comfortable job at a very large corporation is no safe job guarantee. Retiring with the same company is getting harder.

I think I got enough data to make a decision and negotiate. Moving is out of the table due to housing, salary and the fact that I would not like it there. I will go for work remotely (it is 2014, email? webex? facetime?). If it fails, I'll stay in my comfortable job until I find the next best opportunity.

Thanks!