Start-ups wooing senior management from older start-ups that closed down or got acquired
Start-ups are known to identify opportunities where none existed before. According to a report in The
Economic Times, that is just what newer Indian start-ups are trying to do with those who have been left out in the cold when the start-up they worked with was acquired, downed shutters or resorted to brutal cost-cutting. Many new small companies are picking people who are older, have greater managerial experience and a better understanding of the start-up culture than younger talent, at quite affordable rates, that too. Thanks to a series of shutdowns in the start-up space over the past few months, there is a greater degree of sanity in salaries, which had gone through the roof earlier. Now, instead of higher salaries, the experienced talent is offered equivalent stock options.
This provides an opportunity to experienced seniors who would have otherwise either grudgingly walked back into the old corporate world or would have been left out altogether. In many cases, the founder of the start-up being acquired refers the names of many of her/his best talent to the acquiring company. That ends up being a crucial input for the new company in integrating operations with the acquired start-up. It is not that everyone gets absorbed, but it sure helps cut down the stress when a small outfit runs out of cash and/or funding.