Late-Stage Career Returns

Shaan Puri shares insights about "Sarah's List" - a strategy of joining already-successful companies rather than early-stage startups to build wealth. This approach focuses on companies that have proven product-market fit but still have significant growth potential.

Key Points:

• The Sarah's Story Example:

  • Self-made millionaire by 30
  • Joined Airbnb after it was already worth $20B+
  • Got good salary, benefits, and valuable stock options
  • Didn't have to take early-stage startup risks

• Criteria for Target Companies:

  • Clear product-market fit
  • Well-funded and growing
  • Offers competitive salary and benefits
  • Stock package potential to 5x in 5 years
  • Not looking for maximum upside, but lower downside risk with decent upside

• Current Market Context:

  • 36% of startups raising at lower valuations
  • Late-stage startups down 30-60% on average
  • 2/3 of employees have underwater stock options
  • Market correction makes entry points more attractive

• Investment Mindset:

  • Treat your job choice as an investment decision
  • Think like a venture capitalist
  • Use your time as your investment vehicle
  • Focus on venture-backed tech companies
  • Look for companies where $200k stock package could become $1M+ in 5 years

• Success Metrics:

  • Good hit rate would be 6 out of 10 companies having a significant step-up
  • Aim for 4-5x valuation increase in 5 years
  • Beat market returns even if company maintains valuation

• Risk Management:

  • Join after obvious success indicators
  • Avoid early-stage startup risks
  • Get good base compensation while waiting for equity appreciation
  • Look for companies with clear path to growth