4 thoughts on “An MBA among Hackers – Organization Structure”

  1. A startup mentor once said, when you do early stage valuation of a company, add half a mil for each engineer in the company, subtract half a mil for each MBAs 🙂

    1. Satyajit, thanks for the comment. It was Mint.com founder Aaron Patzer who said that “When valuing a startup, add $500k for every engineer, and subtract $250k for every MBA.”

      However, that comment was meant for the US market at a time when there was a surge in demand for MBAs by those that backed startups. Here’s Ben Horowitz’s post that explains it: http://www.bhorowitz.com/is_now_the_time_to_hire_mbas

      The interesting part is

      It turns out that the success of the MBAs from the late 80s and early 90s created an insatiable demand from startup companies and their backers to hire MBAs from top schools. With only a small number of top schools, the newly minted MBAs became the belles of the of the startup ball. Every Stanford and Harvard MBA received multiple offers from top startups and, not surprisingly, many MBAs developed a strong sense of entitlement and overconfidence.

      But if you don’t mind me asking, what was the point of your comment?

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