How risky is it to join a startup?

Lawyers are risk-averse by nature; our job is to minimize risk. But the good news is if you join a startup that fails, “your career should be fine” per WSJ.

A recent Yale and Cornell study of 2.2 million workers shows that while executives may be “tainted” by working at a company that failed, rank-and-file employees are typically “unscathed” because prospective employers know these workers weren’t in charge. In fact, non-executives from failed companies get wage increases and follow career trajectories similar to those who moved on from successful companies.

The caveat, which I’ve seen as well, is when companies fail due to fraud/scandal. For lawyers, I’ve observed the closer you are to the source, then the harder it is to move on. Otherwise, the professional risk of working at a company that failed is lower than you might think.