Whispers of IPO’s Not Influencing Passive Job-Hoppers in Tech

Technology CEO’s across Silicon Valley and beyond continue to list recruiting as one of their top priorities. Meanwhile, visions of IPO’s are starting to dance in their heads.

After a near flat line on venture-backed technology IPO’s throughout 2015 and early 2016, companies like Twilio and Nutanix have shown signs of a an IPO resurgence.

Those offerings have been followed by news that Snap (corporate name for Snapchat) is confidentially preparing its public offering for early 2017. So will those whispers give Snapchat a leg up over unicorns like Airbnb, Uber and Pinterest when it comes to recruiting battles? It does seem like the maker of Snapchat Spectacles, is ramping up its hiring efforts. But will it be too late to tempt top talent that has been increasingly turning back to working with technology incumbents such as Google and Facebook?

To find out we asked 200 new passive job-seekers on the Anthology platform in November — from companies like Facebook, Uber, Snapchat, and many more — As you consider new opportunities from private tech companies, how important is it to you that they be close to planning an IPO / going public?

While sitting on private equity and stock options has become a big problem for early employees at technology unicorns, those contemplating a move to a private technology company today don’t appear to be on the hunt for public offering windfalls.

They also don’t appear to be interested in the stability that a public offering could provide potential employees. More than 50% of respondents (55%) said that how close a private technology employer is to planning an IPO is not a part of their consideration process when assessing new job opportunities.

There was a segment of more than 20% of respondents (22%) that noted plans for going public in the near future were a “somewhat important” aspect of their consideration of new opportunities. Even if future employees realize that becoming a late member of a pre-IPO team won’t put them inline for a big IPO windfall, they probably are comforted with the general assurances that IPO planning could provide. In a time of high-profile blow-ups like Theranos, no one can blame them.

Others (18%), aren’t so sure how an IPO would affect them as a later-stage hire. With good reason. If a company is too far along in the IPO process they may not be able to offer any stock options. In addition, even if you do get access to equity it will likely be an option rather than a grant.

Furthermore it is the founders, early investors, and a handful of early employees that typically take the giant share of public offering proceeds. You may actually have a better shot at getting more equity from a public technology incumbent like Google.

Finally, there was 5% of respondents that viewed IPO planning as a “very important” part of their consideration of potential employers in technology that are currently private. This may be more due to trying to pick the next Google, Amazon or Facebook to work at, rather than the next Theranos.

Two-thirds of those surveyed by Anthology work at technology companies or hold technology roles in top hiring markets like San Francisco, New York, Seattle, Los Angeles, Boston, Chicago, DC, Austin and Denver.

What do you think? Are plans for an IPO a part of your consideration of potential unicorn employers?

Interested in getting matched with a pre-IPO technology company for your career aspirations in a confidential way? Check out Anthology today!