6 Career Options for Ex-Founders | Next Adventure

Navigating the Post-Startup Landscape: What's Next for Founders?

Founders who have recently concluded their involvement with a startup often find themselves at a crossroads. If a successful exit provided substantial financial independence, the path forward is relatively straightforward: self-funding a new venture or attracting investment becomes readily achievable.

However, the reality for the majority of founders is different. Considering that approximately nine out of ten startups ultimately fail, many do not reach that level of financial security.

Even achieving a seemingly high valuation doesn't guarantee a personal payout, as exemplified by the founders of FanDuel, who received no proceeds from a $465 million exit.

Challenges in Re-entering the Traditional Job Market

Having “founder” listed on a resume can present unique hurdles when seeking traditional employment. Employers may perceive a preference for leadership roles over climbing the corporate ladder, potentially decreasing hiring prospects.

Research supports this notion, indicating a potential bias against founders in certain hiring scenarios.

Nate Jenkins, a founder with a successful, though not transformative, exit, encountered this firsthand during a job interview. The interviewer questioned his genuine desire for a salaried position, highlighting a common concern among employers.

Nevertheless, Samuel Sabin, CEO of HireBlue, points out that some organizations actively seek founders for intrapreneurship roles, recognizing their ability to thrive with ample resources and their inherent self-starting drive.

Exploring Your Options

What course of action should a founder take, particularly when personal finances or family circumstances necessitate income stability?

Having personally navigated this situation after shutting down one startup and exiting two others, I've identified six primary options available to founders in transition.

Full-Time Initiatives

• Launch a new company: Embark on a fresh entrepreneurial endeavor.
• Get a job: Secure a salaried position within an established organization.

Part-Time Activities

• Angel investing, venture capital and mentoring: Leverage experience by investing in and advising other startups.
• Consulting: Offer expertise to businesses on a project basis.
• Sell information products: Monetize knowledge and insights through courses, ebooks, or other digital resources.
• Education and self-improvement: Invest in acquiring new skills or deepening existing ones.

At Versatile VC, we are building a community specifically for founders navigating this transition, called Founders’ Next Move. We invite you to join us and connect with peers facing similar challenges and opportunities.

Full-time Initiatives

Launching a New Venture

Embarking on a startup endeavor requires a significantly high threshold for initiation. Venture capital firms diversify their investments, acknowledging that a majority will not succeed. As an individual, lacking such diversification, the inherent risk is considerably greater. For resources to aid in idea validation, explore resources like “What startup will you build? Identifying market white space.”

To refine your search, consider joining specialized communities designed for founders transitioning careers. Options include Versatile VC’s Founders’ Next Move, CoFoundersLab, Founders Nation (with an Israeli focus), Reddit’s Co-founders community, FounderFit Lounge, On Deck Founders, and Second Time Founders. Numerous general online communities also feature entrepreneurship-focused segments, such as LunchClub and Meetup.

Engaging with VCs in your industry can be beneficial, as they often maintain lists of concepts with strong potential. Versatile VC, for instance, publicly shares a list of startup ideas they are interested in funding.

Alternatively, explore opportunities with “talent investors.” Companies like Antler and Entrepreneur First offer stipends – approximately $2,000 per month – to support the development of fundable startup concepts, subsequently investing in the most promising ones. Vegard Medbo, co-founder and chief commercial officer of Antler, notes that 60% of participants are repeat entrepreneurs, with many others having held early roles in successful startups. He emphasizes their search for “strong, like-minded individuals.”

Partnering with a VC offering a formal program for aspiring founders is also a viable path. Entrepreneurs-in-residence (EiRs), though roles are evolving, are typically experienced entrepreneurs building a startup with VC backing. They may also contribute to portfolio company support and deal evaluation.

Compensation for EiRs varies; some receive no income until founding a company, while others earn retainers ranging from $90,000 to $150,000. Contrary Capital’s Talent program targets recent university graduates with entrepreneurial potential or skills valuable to leading tech companies.

NFX hosts a group for second-time founders, and Notation Moonlight is a community for tech leaders contemplating launching a company. Afore Capital operates Zt1, and Human Capital runs Humans in the Wild, both accelerator programs without equity or cash requirements. At Versatile VC, we currently support an entrepreneur-in-residence and welcome inquiries from others.

Consider becoming a VC scout, leveraging formal programs that compensate individuals for sourcing investment opportunities. Scout compensation typically involves a fixed fee and/or a percentage of returns from successful deals, though guaranteed income is uncommon. Jason Calacanis’ book “Angel” details Sequoia’s scout program, offering scouts approximately 45% of returns, with Sequoia receiving 50% and a bonus pool accounting for the remaining 5%.

Jai Malik, venture partner at Republic and former corporate scout for Tata Communications, advises, “The most crucial aspect is demonstrating a willingness to learn whatever is necessary to succeed.” This commitment is a standard expectation across various positions.

Other firms with scout programs include Accel, Chapter One, Village Global, KPCB, Contrary Capital, University Growth Fund, New Stack Ventures, Lightspeed, Atento Capital, Backed VC, Harlem Capital, and Index.

For a modest fee, companies like Day One, OnDeck, or TackleBox can assist in refining and validating your startup idea. Feedback.vc provides feedback from a panel of VCs.

Venture studios present another avenue for developing your concept. Marco Franzoni, managing partner at Disruptive Labs, explains, “Venture studios are a great option for early-stage founders seeking to build a product or scale rapidly. We invest and act as co-founders for pre-seed companies, and as early employees focused on growth for post-seed companies. This ensures experienced partners with vested interests and a strong network of mentors and investors.”

10.10.10, a project of Colorado Nonprofit Development Center, facilitates programs bringing ten entrepreneurs together for ten days to address ten complex problems, aiming to inspire new ventures. Refer to: The 300* startups studios taking on the world.

Finally, to initiate your project, explore collaborations with software development firms willing to accept equity as payment. See: Should you co-found your company with a software development shop?

Securing Employment

Ted Ko, digital product lead at ROOM in Soho, transitioned from CEO of an unsuccessful startup to securing a job. He notes, “Initially, it was challenging to initiate conversations. I had to refocus my resume and LinkedIn profile towards a specialized design role, rather than a generalized one. Once I did so, conversations and introductions began to materialize.”

Joining an established corporation is also a possibility, though Medbo cautions, “Many who join large companies quickly seek alternatives. The pace is slower, restrictions are common, and internal politics can diminish the passion of those driven by innovation and change. Therefore, carefully select your corporate affiliation and conduct thorough due diligence.”

If you prefer driving change, consider joining a startup. Begin by reviewing the portfolios of established VCs for companies actively hiring and valuing your entrepreneurial experience. Curated lists of promising companies for career development are available, such as Wealthfront’s career-launching companies list.

Attend startup Demo Days to learn about firms in your field that are actively recruiting. These events offer a convenient opportunity to network and explore potential opportunities.

AngelList and Crunchbase are valuable resources for identifying teams working on issues aligned with your expertise. If you admire the team and their progress, propose joining as an advisor or co-founder.

Talent agencies specializing in business professionals, such as FreeAgency.com or Labtuit, can be beneficial. Similar to CAAs for actors, these agencies charge a percentage of your first year’s compensation in exchange for finding you the highest-paying employer.

Engaging a negotiating agent is advisable if you struggle to secure adequate compensation, as negotiations become more complex with unconventional career paths. Earner and RivaHQ can assist in optimizing your compensation structure. GetRaised helps determine if you are underpaid and provides guidance on requesting a raise, free of charge.

Joining a community of professionals seeking new roles is another option. Teal and Propel offer career services, community support, and tools to aid in your career progression.

Consider opportunities in politics or with NGOs. Major policy and political organizations are actively seeking to enhance their digital capabilities. InclusiveAmerica is a database of underrepresented individuals interested in politically appointed positions. For left-leaning opportunities, explore The Democrats are hiring and the Biden administration’s openings. All Hands is a resume bank focused on tech talent seeking to contribute to progressive/liberal causes. Tech for Campaigns connects tech professionals with Democratic campaigns. For right-leaning opportunities, visit ConservativeJobs.com.

Part-time Activities

Angel Investing, Venture Capital and Mentoring

According to Will Stringer, CEO of Chisos, engaging with founders and conducting due diligence on companies from an investor’s perspective can be a valuable method for identifying potential future projects or even securing employment within those companies.

For those interested in angel investing, platforms such as Republic* facilitate investments starting at just $100 in early-stage startups, accommodating both accredited and non-accredited investors. Furthermore, several VCs, including AngelList Spearhead, offer programs to supplement your investments with additional capital. Abe Othman, head of data science at AngelList, notes that both prior company founding experience and investment activity are indicators of future success, with the combination of both proving particularly impactful.

If a career in venture capital appeals to you, dedicated study of the industry is crucial. Transitioning to a VC role is often a logical step following a successful business exit. Resources include: Microcredentials for the effective venture capital or private equity investor; Syllabus for how to launch, manage, and invest a VC fund; and a Reading list for analysts and associates in private equity/venture capital.

Direct employment within venture capital is also an option. Explore Venture capital compensation data and recruiters list, as well as guidance on How to negotiate a partner role at a VC or private equity firm.

Consulting

A straightforward path to income generation during a period of career exploration is through part-time consulting work. Research from M13 indicates that relevant executive expertise can potentially double the return on venture investments for a startup.

To begin, consider joining prominent expert networks like AlphaSights, GLG, Guidepoint and Third Bridge. These networks provide a readily accessible means of earning income through hourly consulting, requiring no initial investment, and offer a unique opportunity to gain insights into how major industry players perceive your field. This also serves as a highly efficient way to get compensated while expanding your knowledge.

Patrick Sullivan, CEO of Bonsai, stresses the significance of optimizing your online profile with relevant keywords to maximize the likelihood of receiving consulting requests.

Consultant networks can also be beneficial. Startups.com assists startups in locating consultants with pertinent domain expertise. Braintrust*, a user-controlled talent network, connects organizations with tech professionals who retain 100% of their market rate. Bolster focuses on collaborating with rapidly growing tech companies.

Established networks include Business Talent Group, Catalant, Eden McCallum (with a focus on the U.K. and the Netherlands), EIM, Eleven Canterbury, Expert360 (Australia), ForteOne, HighPoint Associates, Alumni Global (U.K.), SMA, Talmix (U.K.), Umbrex and 10EQS. For further options among Europe-based interim service providers, consult the Institute of Interim Management Interim Management survey.

You might also consider affiliating with a private equity or VC firm as a board member, consultant, scout, EiR, operating partner, or in a full-time capacity. At the very least, engaging with leading VCs in your sector is valuable, as they typically possess extensive networks and can offer insights into job or advisory opportunities.

Advising major consultancies is another avenue. Some firms maintain databases of external consultants (for example, PwC’s Talent Exchange). Adham Abdelfattah, an advisor to senior partners at McKinsey, notes, “A strong understanding of technology is highly valued when becoming an advisor to top firms. Technology represents a key challenge for them, and they are consistently seeking experienced individuals who combine technological expertise with managerial acumen to serve as advisors. Basic networking, and even direct emails, can be sufficient if the individual possesses relevant experience. Securing buy-in from one or two partners can often lead to an advisory role.”

Alternatively, connect with a specialized consultancy within your niche. A vast network of smaller consultancies utilizes external, part-time consultants on an as-needed basis. It’s generally easier to join their “call list” than to secure a full-time position. TheConsultingBench provides a directory of over 600 consulting firms.

Launching your own consulting practice is also a viable option. An increasing number of professionals are establishing long-term careers as independent consultants. Refer to the Umbrex guide to setting up your own consulting practice, authored by McKinsey alum Will Bachman.

Your accumulated experience is valuable and can be leveraged to provide career guidance. Companies like Bonsai, Evisors and Rooftop Slushie compensate individuals for sharing their expertise with early-career professionals.

Sell Information Products

Founders seeking supplemental income and increased visibility can transform their expertise into marketable products, such as online courses or e-books.

Abdelfattah suggests, “Gumroad and Teachable are excellent platforms due to their low fees and ability to allow creators to maintain direct relationships with their audience. The trade-off is the responsibility for self-promotion, which can be time-consuming but also a valuable learning experience. Udemy offers a platform with organic traffic, but it doesn’t allow you to directly own your audience relationship. I recommend focusing on a well-understood topic, limiting the initial time investment to a week or two, and publishing something simple and unrefined. I’ve personally achieved success with a course summarizing the consulting problem-solving method, which has attracted 381 students from 44 countries. Daniel Vassallo, who left Amazon to pursue a new venture, is another successful example, funding his efforts through information products.”

Creating a newsletter is another possibility. Abdelfattah explains, “You can use an off-the-shelf solution like Substack, or a combination of Ghost (which offers a complete membership and newsletter stack). Lenny’s Newsletter is a great example of a successful newsletter created by someone in transition; a former Airbnb PM, he detailed his process here. Newsletters can also be effective for recruitment. For instance, I recently had a startup funded by A16Z and Marc Benioff reach out to me regarding a CPO/COO role after the founder read my newsletter. Of course, further conversations were involved, but the initial connection was made through the newsletter.”

Reflection, Education and Self-Improvement

If time and resources permit, Columbia Business School’s Executive Ed program provides a comprehensive library of free, on-demand webinars. Fast Track, a mentorship program for First Round Capital team members, is now open to applicants. Many universities offer specialized free programs for their alumni. For additional ideas, explore Alternatives to college: Get paid to learn.

Consider joining a university accelerator or entrepreneurship center as a mentor, EiR, or guest lecturer. Most universities welcome collaboration with individuals regardless of their alma mater.

Suzanne Ley, lead business development manager at Lumen Digital Ventures, advises, “I frequently encourage individuals in transition to dedicate a portion of their job search time (~10%-20%) to pursuing something they’ve always wanted to do, but may have been hesitant to attempt or felt unprepared for. While immediate financial needs are often paramount, allocating time to a personal project can provide energy and motivation, and potentially yield unexpected results over time.”

Sullivan, of Bonsai, emphasizes, “Building a company is demanding, and founders often neglect self-care. When you have the opportunity, I strongly recommend stepping back to ensure you are well-prepared for your next challenge.”

One founder highlighted the importance of reflecting on long-term goals: “During my time building my startup, the pace was so rapid that there was little opportunity for long-term thinking about what truly motivates you, which stages of the company you enjoyed most, what working dynamics you thrive in, and what you learned from years of hard work. This type of reflection is crucial for identifying the next long-term opportunity, rather than simply jumping into something to stay busy, as we are often accustomed to operating at full speed seven days a week.”

Final Thoughts

Regardless of the strategy you adopt, a comprehensively completed LinkedIn profile is essential. Experience as a product manager at a well-known organization like Google requires minimal elaboration due to its inherent recognition.

However, leadership roles within lesser-known entities – even those culminating in substantial acquisitions – necessitate detailed descriptions to accurately convey your contributions.

Michael Adler, a senior managing partner at AC Lion Venture Partners, highlights the importance of maximizing the descriptive text directly beneath your name. This section serves as the initial impression for profile viewers.

Individuals rapidly form opinions based on your self-description, making a concise yet informative summary crucial. Further guidance on crafting effective resumes and LinkedIn profiles can be found in resources like "How to sell your professional background."

Acknowledgements: We extend our gratitude to Katherine Boe Heuck for her research assistance.

We also thank Emily Campbell, Esq., of The Campbell Firm PLLC; Michael Adler, senior managing partner at ACLVP; Katie Weiss of SingleSprout; Will Bachman, CEO of Umbrex; Ha Duong; and Marco Franzoni, managing partner at Disruptive Labs, for their valuable feedback.

Disclaimer: The author holds investment positions in Braintrust and Republic through HOF Capital, where a prior role was held as managing partner.