How to evaluate a startup before you join: runway, stage, founders and the questions to ask

You're going to spend two to four years of your career on this decision. Spend two hours on diligence.

Money

Ask directly: when did you last raise, from whom, and how many months of runway do you have at current burn? A funded startup should answer in seconds. Less than 12 months of runway without a fundraise in progress is a risk you should be paid for. Public sources: Tracxn, Crunchbase, the company's own press, and MCA filings for Indian entities.

Business

Can you explain, in one sentence, who pays the company and why? If you can't after reading the website and talking to two people there, the company may not be able to either. Ask what the last three months' growth looked like and what the biggest risk to the plan is.

Founders

Look for founders who answer hard questions plainly, admit what they got wrong, and can describe the job you'd do without hedging. Check how they talk about former employees. Ask the interviewer who left recently and why — the answer tells you how the company handles departures.

People

Ask your would-be manager how decisions get made, how often people ship, and what happens when something breaks. Ask a peer, not a manager, what they'd change. Look at tenure on LinkedIn: a team where everyone joined in the last six months has a story.

The offer letter

It should state fixed pay, variable structure, ESOP grant with vesting, cliff, exercise price and exercise window, notice period (symmetric), probation terms, and start date. Anything promised verbally that isn't in writing wasn't promised.

A simple scoring

Runway (2 points), clear business model (2), founders you'd trust with your money (2), a manager you'd learn from (2), an offer letter with no gaps (2). Under 6, keep looking.