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Talking about tech startups:
Depends on the startup. If they have a good team, they might get acqui-hired. If they have any patents or other IP, they might get acquired (for not much). Investors get the bulk of these types of exits, and the founders and employees get screwed.
If the startup doesn't even have that, they may just wrap up the operation and go out of business.
Interesting, the place I work at still has runway (apparently), but we're not close to being profitable, have no clearly defined market fit, and we're rapidly bleeding long term hires that are getting fed up and quitting. I'm sensing from the unusual silence from the founder that discussions of some sort are happening higher up that we're not privy to. I'm trying to figure out what the signals match up to.
You should freshen up that resume and LinkedIn profile
Can you elaborate on your stink comment? Do you mean just being someone who was laid off (which I personally don't have an issue with) or something else?
Having worked for a shitty company like Theranos or whatever is not great for your resume. You want people to read your resume before the company name is tainted by bad press.
I feel bad for the people who've worked at companies like that. Obviously the "morally correct" option is to quit as soon as you find out what you've been "working on" is fake, but I imagine not everyone would have that choice, particularly the low level peeps. I feel like you'd probably end up having to write off the experience entirely and exclude it from your resume or fudge the dates or something to have much luck of getting hired elsewhere
Oh, it's sparkling, and I've backed up all my proof of awesomeness to show the next job. I'm finally in a place after 25 years of constant employment where I don't fear unemployment. We've been diligent about building a buffer, and I have solid generalist skills and experience in a very popular tech movement.
We went through an intern phase, and the remaining ones (that are now employees) don't have the same experience moving between jobs, so my focus is on prepping and guiding them.
FWIW, not being profitable isn't such a red flag. It's not uncommon for a startup to never get anywhere near profitable but still be fine. But in your case, it sounds like there are other signals too.
"Bleeding long term hires" are reading the tea leaves. Better to get a new job when you have one, finding a job when you need it is much harder.