Rabois: Unlike VC investing, employee hiring requires actively managing downside risk
Keith Raboi · How to Identify Top 1% Talent (Keith Rabois, Investor in Doordash, YouTube, Airbnb & Lyft) · May 21, 2024 · at 31:46
Keith Rabois contrasts the risk profile of hiring startup employees against evaluating early-stage founders as a venture investor.
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“So when you're hiring employees, the tune of the model has to be different than when you're investing in founder. Like on the founder side, I only care about the upside. I don't actually worry about the downside of being wrong. When I'm hiring for a company, an organization, or interviewing people as a board member for an organization that I'm involved in, I need to think through, like, what are the consequences of being wrong and what the probabilities would be on the wrong side of that equation, and then that might mean occasionally sacrificing some upside data.”
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