The Role of a Founding Engineer in Tech Startups

While founding engineers exist in many industries, this article examines the role within the context of startups building software products.

Overview

A founding engineer is the first few engineers at a tech startup. Generally, a tech startup’s first few hires will be engineers, and all will be considered founding engineers. The “founding” in the title means that the engineer is part of the founding team but not a founder themselves. They receive less equity (ownership of the company) than the founders but will usually receive a higher salary compared to later employees.

The role of a founding engineer is distinct because they play a crucial part in shaping the product, technology stack, and overall direction of the company from the ground up. Founding engineers are not just contributors but are also key decision-makers who influence the company’s success. They are involved in every aspect of the product lifecycle, from ideation to deployment, and their work sets the foundation for all future development.

This position demands a blend of technical excellence, strategic thinking, and a deep understanding of the market and customer needs. Because startups are inherently volatile, with rapidly changing goals and priorities, founding engineers must be adaptable and ready to pivot as the company learns and grows. They are often tasked with turning abstract ideas into concrete products quickly, iterating based on user feedback, and scaling solutions as the company gains traction.

The Job

The founding engineer’s job is hard to summarize, as a startup is a very volatile environment with ever-changing business goals, strategies, ideas, and products. At its core, a founding engineer’s job is to build. They work alongside the founding team to create Minimum Viable Products (MVPs) that test the startup’s hypotheses about what the market desires.

Building MVPs is more than just coding. A founding engineer needs to understand the business goals and constraints, make decisions about the technology stack, and prioritize features that will provide the most value in the shortest time. They need to be comfortable with building quickly and iteratively, often with limited resources.

While this may sound like the founding engineer’s job is just to code, being an FE involves wearing lots of different hats and can feel like a choose-your-own-adventure book. In a single day you might:

• Conduct market research by talking to potential customers
• Hop on support calls to help educate your customers on the product and to debug issues for them
• Source and interview potential hires
• Help your CEO fill in a slide or two on a pitch deck
• Collaborate with the design team to create user-friendly interfaces
• Plan and execute product launches

It would be a herculean task to expect an FE to do all of this on top of coding and building the product. Thus, as an FE, you can typically choose which non-coding activities you want to take on and which would distract you and take you too far away from building.

One non-coding line of work that you cannot avoid, however, is product management. An early startup typically does not have the luxury of a dedicated product manager, so everyone is expected to act as a PM and own the product. There is no room for code monkeys who just code. Everyone needs to have opinions on where they think the product should go and voice these opinions. For those of you who don’t know, a product manager’s role is to own a product (or a particular feature of a large product) and act as a mini-CEO for that product — managing its projects, recruiting engineers to work on it, being the point person when people have questions, making sure that the product is well supported in future roadmaps, etc.

Just like any other early employee at any company, you will be setting the cultural foundation of the company! The first few hires not only build the product but also weave the tapestry of the company’s cultural fabric. You may recruit your friends and past coworkers. Your personality, judgment, and overall vibe will convince (or deter!) prospective employees from joining. All the micro and macro decisions you and the founding team make will cascade as the company grows.

Who is an Ideal Founding Engineer?

The ideal founding engineer is a unique blend of technical expertise, creativity, and adaptability. Here are some key characteristics and skills that define an ideal founding engineer:

1. Proficiency in Building MVPs: The ability to quickly develop Minimum Viable Products (MVPs) is crucial. An ideal founding engineer is skilled at building functional prototypes that can be tested in the market. This requires not only coding skills but also an understanding of what features are essential for the MVP.
2. Adaptability and Resilience: Startups are unpredictable environments. Business goals, strategies, and products can change rapidly. An ideal founding engineer thrives in this dynamic setting and can pivot quickly when needed. They are resilient and can handle setbacks and failures constructively.
3. Customer-Centric Mindset: An ideal founding engineer understands the importance of the customer. They are proactive in gathering user feedback, understanding customer needs, and incorporating this feedback into the product development process. This customer-centric approach ensures that the product remains relevant and valuable.
4. Product Management Skills: Early-stage startups often lack dedicated product managers, so founding engineers must take on product management responsibilities. This includes defining product features, prioritizing tasks, and making strategic decisions about the product’s direction. An ideal founding engineer has strong product management skills and can think from a product perspective.
5. Problem-Solving Ability: Startups face numerous challenges, from technical issues to business obstacles. An ideal founding engineer is a natural problem solver who can find innovative solutions to complex problems. They can think critically and creatively to overcome hurdles.
6. Strong Communication Skills: Effective communication is essential in a startup environment. An ideal founding engineer can clearly articulate ideas, provide constructive feedback, and collaborate effectively with the founding team, customers, and other stakeholders. They can also explain technical concepts to non-technical team members.
7. Ownership and Responsibility: The ideal founding engineer takes full ownership of their work. They are responsible for the product’s success and are committed to delivering high-quality results. This sense of ownership drives them to go above and beyond in their role.
8. Team Player: While technical skills are important, being a team player is equally crucial. An ideal founding engineer works well with others, supports their teammates, and contributes to a positive team culture. They are willing to help out in areas beyond their core expertise when needed.
9. Passion for Learning: Startups are environments of constant learning and growth. An ideal founding engineer is passionate about learning new technologies, improving their skills, and staying updated with industry trends. This continuous learning mindset helps them adapt to new challenges and opportunities.
10. Entrepreneurial Spirit: Finally, an ideal founding engineer has an entrepreneurial spirit. They are excited about building something from scratch, taking risks, and being part of a journey to create a successful company. This entrepreneurial mindset drives their passion and dedication to the startup’s mission.

In summary, an ideal founding engineer is a versatile, customer-focused, and resilient individual who can navigate the complexities of a startup environment. They combine technical prowess with product management skills, effective communication, and a strong sense of ownership. If you possess these qualities and enjoy the thrill of building innovative products, the role of a founding engineer could be a perfect fit for you.

Compensation and Risk

As a founding engineer, your compensation largely depends on how much money the startup has raised. From my personal experience, you will earn a decent amount of compensation that is competitive within the startup ecosystem. While it may not match the salaries offered by big tech companies, it is balanced by a highly attractive component: equity. This means that if the company grows, your financial stake in the form of equity shares also grows.

Equity in a startup is often a significant part of the compensation package for founding engineers. Although this “paper” equity might not have immediate cash value, it holds the potential for substantial financial rewards if the startup succeeds. In fact, a successful startup can turn those equity shares into a life-changing amount of money.

Here are a few key points about the compensation and risk for founding engineers:

1. Salary: Founding engineers typically earn a lower salary than they would at big tech companies (like Google or Meta) or later-stage startups. However, this is offset by the equity component, which can be quite substantial.
2. Equity: Equity compensation can range from 1-2% ownership of the company, depending on the startup’s stage and your role. While this percentage might seem small, it can translate into significant wealth if the startup achieves a high valuation.
3. Learning and Growth: One of the most invaluable aspects of being a founding engineer is the learning and growth opportunities. The dynamic startup environment forces you to constantly learn and push past your limits. This rapid learning curve can lead to career advancement and open up future opportunities that might not be available in more established companies.
4. Financial Risk: There is an inherent financial risk in joining a startup as a founding engineer. Startups have a high failure rate, and your equity might end up being worthless if the company doesn’t succeed. However, the skills and experience you gain can be invaluable, making you more attractive to future employers and potentially leading to higher-paying roles down the line.

Working as a founding engineer involves taking on more financial risk compared to roles in established companies. However, the potential rewards, both financially and in terms of personal and professional growth, can be significant. If you have a high tolerance for risk and a strong desire to build something meaningful, the role of a founding engineer offers a unique and rewarding career path.

In conclusion, if you have the risk appetite and the desire and willingness to push yourself, the founding engineer is a role that I can definitely recommend. The combination of equity, learning opportunities, and the chance to shape the direction of a startup makes it an exciting and fulfilling career choice.