Linda Yuan

Source: Techcrunch

Zenefits had it all.

After graduating from Y Combinator and launching in February 2013, Zenefits—an HR software company with attached services such as health insurance – grew faster than imaginable right out of the gate.

Fast forward to May 2015, just two short years later, and Zenefits closed a $500 million round of funding, boosting its market valuation to a whopping $4.5 billion. Financiers included Andreessen Horowitz, Fidelity, Khosla, IVP, and many others. The company was a Silicon Valley darling and exemplified the type of hyper-accelerated growth that startups should strive for. VCs that missed out of prior rounds tried to fight their way into similar companies.

Unfortunately, when something sounds too good to be true, it usually is.

Earlier this year, news emerged that fast-growing Zenefits was cutting corners — a lot of them. Members of its sales team were selling insurance in at least seven states even though they were unlicensed to do so. In order to gain licenses in California, workers need to spend 52 hours in training. Former CEO Parker Conrad created a macro that allowed employees to stay logged in at all times in order to speed through the training and sidestep the formal licensing process altogether.

The very creation of the macros begs the question: Is the reason why many startups are so successful because they are able to skirt the law? When is the Silicon Valley motto “ask for forgiveness, not permission” taken too far? Continue reading →

Happy New Year everyone! As 2016 begins, I’ve been reflecting on last year and the changes it brought. As people begin their resolutions and promise to “Work Harder!” and then inevitably give up partway through the year, here’s something to think about to keep morale up for your job and work-life balance.

Most people think of work-life trade off in terms of number of hours worked vs number of hours spent on “life”. So when people think about going to work at a startup, they assume employees are working like dogs and that work-life balance goes out the window. So if I tell you that working at a startup may actually make your life feel better, despite working longer hours, it sounds contradictory. But hear me out.

“Sitting in front of a computer drinking lattes working on something fun is a breeze compared to how hard people work in other industries.”

– Michael Wolfe (Stripe co-founder)

Continue reading →

A little over a month ago, I jumped from the safe, prestigious world of venture capital to something more volatile: working for a startup directly. It wasn’t something I had planned — at least, not as quickly as it happened. But it was a decision I knew I had to make eventually.

Since my job in VC involved working very closely with startups, I thought I knew what I was getting myself into. I was wrong; it’s been way busier, crazier, and more fulfilling than I expected.

There are many aspects I miss, such as knowing industry trends and meeting incredibly bright founders. And, since my background is very finance-heavy, I related to friends by talking about fund returns and IPOs and all that other investment jargon. I’ve sort of lost those now but I’ve gained a newfound respect for super early stage founders and startup employees.

So, VC to startup. What happened? Continue reading →