Company raising funding but lots of churn amongst AEs.

Hey guys, I am in the final stages with a company that kind of confuses me. On one hand, they have been able to raise Series Rounds almost every year and are backed by some of the largest Venture Capital Firms out there. However, when I looked, I found that in the past couple of years, there have been a lot of remote AEs that have not lasted past a year.


Recently, the company hired a whole new sales team where the AEs are new and even a new sales manager who is tasked with growing out his team.


I am curious as to how a company can raise this much funding (they are a Series D and looking to go public soon) while having so much churn in their AE team.


Usually, I expect this from a startup. I do not expect this out of a company that wants to go public soon.


I read Glassdoor and a 1 star review for this company by an AE had like 25 likes....


It is an unusual case, what is likely going on?

☁️ Software Tech
🏬 Enterprise Sales
12
CuriousFox
WR Officer
3
🦊
Prolly monitored and micromanaged out the frame.
jefe
Arsonist
3
🍁
Agreed. NOT for me
BitcoinAddict
Opinionated
2
AE
I have heard micromanagement is rampant.
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
VC's come in and raise quotas, reduce comp plans, require a TON of reporting (ie more important to enter a meeting/call in SF than actually having the meeting itself). Lots of hiring of C-level people who look good on paper but all they do is... nothing.

Very typical.

And in sales, it becomes a "churn and burn" environment, or sink/swim - however you want to say it. The "company" doesn't really want to see a sales person being overly successful. They want strong sales, yes, but they don't want to actually pay the sales people. This is when the VCs (and c-level people) make THEIR money.

So just know that is going to be a high pressure sales environment - they will want FAST results and won't have much patience for long sales cycles, etc.
BitcoinAddict
Opinionated
1
AE
The C-Level has remained relatively constant throughout the years though. I can see the reporting meeting or call in SF rather than having it.
BigShrimpin
Catalyst
1
Account executive
worried im about to experience this
BitcoinAddict
Opinionated
0
AE
Hang in there homie
Pachacuti
Politicker
0
They call me Daddy, Sales Daddy
happens. Just keep your head down and do your work. OR get some incriminating photos of the CEO with a hooker. Either way works.
BigShrimpin
Catalyst
0
Account executive
its unlikely ill lose my job or anything like that but somehow despite a large miss last year (that every other company in our space experienced) we have not changed course at all

regardless of what happens ill still be selling and getting paid just weird going from a blowout year 1 & 2 (thanks to some lucky whales) to targets 4x that number as if i can just pull more of those out of my ass
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
Micromanagement leads to AE churn.
poweredbycaffeine
WR Lieutenant
0
☕️
Pre-IPO strategy is to bolster the board and exec team with big names and backgrounds. Then build a growth plan that requires a sales team of X size. Hire that team and maintain it at a passing grade of quota attainment. Fire the ones that don’t and rehire.

Then once they IPO they start slicing.
BitcoinAddict
Opinionated
0
AE
So in other words, they start getting rid of sales reps once they IPO and not before it?
poweredbycaffeine
WR Lieutenant
0
☕️
Well, that depends on what the bank taking them public thinks.
Diablo
Politicker
0
Sr. AE
Doesn't sound right. Looks like they are experimenting very often and one of the results could be - layoffs, de motivation etc., Did you get a chance to speak to one of the current/past employees?
BitcoinAddict
Opinionated
0
AE
I did and heard mixed reviews. They all said it is a great place to make money but that micromanagement was certainly a thing.
barelyknowsanything
Opinionated
0
AE (Account Executive)
What type of company sounds like the last job I was at?
BitcoinAddict
Opinionated
0
AE
They do rebate management software
Beans
Big Shot
0
Enterprise Account Executive
Churn and burn while raising right now is a huge red flag.
SalesBeast
Politicker
0
Sales Leader
That’s a red flag. No thanks.
10

Lots of changes to sales team (massive growth, smaller territory, increase quotas). What do I do?

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9
10

Hiring freeze until company hits Series A funding milestone.

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16
15

Company Churn

Question
13
Team Churn
43% better for me, more opps + manager has 0 clue of anything
44% wheres the exit, massive red flag
13% Im all about myself
79 people voted