A startup gets seed funding and is ready to move to the next step. Say you get a solid job offer from them after clearing the interviews. Can they rescind the job offer at this stage due to their own issues ? If yes, then what could be the issues which would make them rescind a job offer ?

Note that the company finds no issues with you as basis for rescinding. (Issues such as not passing background check, re-negotiating after agreeing to an offer, having said or done something stupid in the present or past etc.)

  • @VietnhiPhuvan - I guessed that highly experienced people would have seen such things in their career and could share the reasons with me. Perhaps you are not aware of such situations and hence, feel that my question is speculative. I wonder if its okay to ask the company such questions. They might not be entirely honest for all I know. If I get some pointers from people here, then I could bring up those points in my discussions with the company. – Erran Morad Oct 16 '16 at 20:19
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    They could be honest with you. Or they could choose to tell you a fairy tale. We don't know them, you don't know them. And anything they tell you about their reason is unverifiable. If you have no means of verification, getting to the truth is a waste of time. Because you wouldn't have any idea what the truth is, even it were staring at you in the face. I'd look for another job. And hopefully, that job doesn't come with a prospective employer who jerks me around. – Vietnhi Phuvan Oct 16 '16 at 22:41

Can they rescind the job offer at this stage due to their own issues ?

Yes they can. In the US, a job offer can be rescinded at any time.

If yes, then what could be the issues which would make them rescind a job offer ?

The list is endless, and purely speculation.

  • Their funding may be suspect
  • They could have rethought their need for that particular position
  • Someone could have decided at the last minute that you weren't a fit for the role
  • They may have decided that they aren't yet ready to hire because their time is needed elsewhere
  • etc, etc.

These are all possibilities. But if you want to know the actual reason for your particular situation, the only way to find out is to ask. (And even then you probably won't get an answer).

Startups tend to be like that. Things never stay the same for long.

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    They could also rescind an offer just to be jerks. – WorkerDrone Oct 17 '16 at 11:38

They can rescind the job offer any time up until a contract is signed, for any reason or no reason at all. Normally this would only be because they either don't have the money they thought they did, don't need the role filled, or have found someone else to fill it.

Another possibility is one I have had quite a few times. A company wants a small job done cheaply, while negotiating that task they talk big about all sorts of other work they'll probably have for me if I do well. In fact it's just a negotiating ploy to drive my price down.

Bottom line, is nothing is certain until a contract is signed, and even then watch your back.

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    Thanks Kilisi. Appreciate your answer. Side note- Some companies used "the ploy" you mentioned, on me. I guess you could agree to the job offer under the condition that they would change the compensation according to responsibilities. This tactic could be good for pros, but fatal for beginners though – Erran Morad Oct 16 '16 at 20:24
  • What if you signed a contract and it was rescinded before your start date? – danyim May 5 '17 at 8:16
  • That would be a wholly different scenario, might be worth asking the question, but I think it's been answered before. – Kilisi May 5 '17 at 21:47

Start is very fluid. If they just got funding the money may have required them to change focus. The money may have told them what resources to use. Money rules.

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