After one-year ban by IITs, companies shun "startup" tag
A year after the IITs barred startups from its campus placements, new companies seem to be ever-wary of being labeled one. So cautious are they that many have simply refused to acknowledge themselves as "startups" in the job notification form. The closest they have come to is "senior startups". But that's not all they have tried to get their hands on the best talents.
Last year's ban was based on unreliable practices
In 2016, the IITs banned several companies, mostly startups, for unreliable practices. Several had revoked job offers, some provided fake office addresses, and more. They revoked the ban on 31 companies after scrutiny. The IITs gave three reasons: students wanted to work for some of the firms; new IITs could benefit from a large company-base; and a decision was pending after one year anyway.
Startups go all out to make up for past mistakes
Now newly-formed companies are telling IITs they are at best "senior startups". In some campuses, they are modifying their initial offer to get a better slot during hiring. The number of startups coming for placements has decreased by 30-35% since 2015, but annual compensation has increased 10-15%, signaling a certain stability. The older campuses have more startups on their list than the newer ones.
A word of caution for students
The IITs have taken steps to ensure students aren't taken in by tall claims. While revoking the ban, IIT-Bombay emphasized on thorough background checks, including funding and growth prospects. A placement officer said they have warned students about companies' hiring history. A certain section prefers startups since "some feel that one gets ownership of work in a startup". Irrespective, students should remain alert.
