When a startup falters, other companies rush in to grab talent

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When a startup falters, other companies rush in to grab talent GlobeSmallBiz

Kundan Joshi, CEO of TheAppLabb, seen here on Jan. 16 2020, was among numerous company founders who got actively involved in the effort to find both Nudge.ai and Planswell employees their next place of employment.When Canadian robo-adviser Planswell shut down last fall, the startup community reacted swiftly on social media, offering both sympathy and opportunity to the dozens of people suddenly out of work.

Mr. Joshi acknowledges the efforts aren’t just to benefit employees, but the startups as well. “As much as the companies want to take care of each other … we are also looking for good talent.” Erin Bury, CEO of Final Blueprint Inc., a Toronto-based online estate-planning company operating as Willful, says it’s accepted in the startup world – by both founders and employees – that not every company will make it."It’s never a happy day when conducting layoffs … but it probably provides some hope for founders that the community is pitching in and their people will be okay,” says Ms. Bury, who recently hired a software developer laid off by Planswell.

Many former Planswell employees were also careful about what job they took next. Ms. Bury says those she interviewed had a lot of questions about how Willful is funded, the revenue model and its long-term growth strategy."If you've been burned by a startup, you really want to be careful getting into another startup," she says.

 

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