6% of Rehired FAANG Engineers Opt for Early-Stage Startups, Fueling Debate on Top Talent Location

A recent social media post by Craig Weiss has ignited discussion within the tech industry regarding the true location of the "best engineers" and where "talent density is highest." Weiss asserted, > "Somehow this is still not common knowledge, but the best engineers work at high-growth, early stage startups. This is where you want to be and where talent density is highest. It's never been FAANG." This statement challenges the long-held perception that top engineering talent predominantly resides within major tech giants like Facebook (Meta), Apple, Amazon, Netflix, and Google (Alphabet).

Historically, FAANG companies have been magnets for top global talent, offering unparalleled scale in projects and substantial compensation packages. Engineers at these firms often gain experience building systems for billions of users, a unique challenge that many consider invaluable. As one former Microsoft and Amazon engineer noted in a Reddit discussion, "we are experienced in working at scales that people who work in smaller software shops never see or even dream of."

However, the appeal of early-stage startups lies in the opportunity for "zero-to-one" work, direct impact, and a broader scope of responsibilities, which can be more attractive to engineers seeking entrepreneurial experiences. While talent density at startups can vary significantly, some, like OpenAI, are recognized for attracting highly skilled individuals. The tweet highlights a preference for environments where individual contributions are more immediately visible and influential.

Recent shifts in the tech job market, marked by significant layoffs at major tech companies in 2022 and 2023, have further influenced talent movement. A SignalFire report from 2023 indicated a "Great Restart" in compensation norms and a shift in hiring power towards startups. Notably, 6% of rehired FAANG engineers who were laid off or left their positions between May 2022 and March 2023 chose to join early-stage startups, an 82% increase compared to the previous year.

Despite this movement, the debate over talent quality remains nuanced. Critics argue that FAANG engineers are often adept at navigating complex interview processes, while some founders express caution, viewing extensive FAANG experience as a potential negative signal if candidates are not fully aligned with startup missions. Conversely, many believe that the structured environment and mentorship at big tech companies provide a strong foundation for developing engineering fundamentals.

Ultimately, the landscape of top engineering talent is evolving, with both large corporations and nimble startups offering distinct advantages. While FAANG companies continue to attract and develop highly specialized engineers working at massive scale, the increasing flow of experienced talent to early-stage ventures suggests a growing recognition of the unique opportunities and high impact found within the startup ecosystem.