Ask HN: My flat startup just became a pyramid. Now what? | Hacker News Reader

Ask HN: My flat startup just became a pyramid. Now what?

8 pointsthrowaway_zev8 comments

I work at a startup that was, until recently, embarrassingly flat. No middle managers. But not because we were believers in consensus - we just had initiatives from the CEO and CTO, and a lot of people scrambling to achieve them.

To my eternal surprise, we're doing better than most of our competitors, we've grown 10x since I joined, and no layoffs are on the horizon.

I really thought I'd be leading a project by now or managing, and I essentially am! Just not officially.

So we're finally getting some structure. But not promoted from within. All hired from outside the company. We've gone from having no VP of anything to having Executive VPs who hire other VPs who hire Directors, in the space of a few weeks.

I really thought we were going to hear that our CEO had been fired by the board, but to my surprise he has not been.

I'm not sure what to think about it.

I'm looking for guidance from people who've experienced something similar. I've been through chaotic re-orgs, but those were at failing companies, with accompanying layoffs. This company is doing okay but it's suddenly transformed and I don't know if it's good or bad, or if my career prospects just became better or worse.

It kind if sounds like they might be getting the house in order to a acquisition. Do you own stock?

I have options. But an acquisition is usually preceded by a severe slowdown in hiring, if not an outright freeze.

One of the startups I worked for took 6 months to introduce procedures rules meetings and a management veneer before approaching a client about merging. I dont know that is what is going on here but my gut is telling me that a potential funder wants to see more structure before investing in or acquiring them

Interesting.

From what I know of the funding situation, they're looking for some kind of exit in the next couple of years. So a pro management team might be a part of that. (I should mention that the new execs are all from the upper-middle tier of household-name companies. Definitely bragworthy achievements but not legends.) I don't know if they have an actual acquirer right now; they aren't really acting like that as far as I can tell.

I guess acquirers care if you have pedigreed management? And probably it looks good on an S-1, if that doesn't turn out?

Sounds like company is doing well but also that the fun is over and you are going to be doing a lot of useless meetings and power point presentations soon

It’s probably both a sign that things are going well (more investment, etc) but that the company will turn to shit soon. That’s what startups are for though, ride it out and see if your stock becomes worth a lot now.

What do the CEO and CTO say when you ask them about these initiatives?

I haven't asked them directly, so maybe that's on me. There are reasons for that but to discuss them here might identify the company and the people involved.

I'll try that and get back.

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