Hiring After Each Investment Round

 As a successful Toronto-based recruiting firm with global scope, we have worked with thousands of Founders and CEOs to help them make strategic hires across Product, Design, Marketing, and Sales.

Our engagements with a tech startup often begin following a round of investment, sometimes following a sizable seed round or the champagne-popping moment of a Series A

As a venture-backed startup grows, the needs of the company change, and so do the types of hires.

Here are our insights into the three stages of hiring that follow investment rounds:

Seed Round:

When a startup raises a seed round, the focus is on building the product and the business. The first hires after a seed round are typically Engineers and the first Product Manager, who are focused on short-term wins and developing strategies on the fly. 

These hires are often a "player/coach" type, who can help the Founder stand up the product and business while establishing best practices and mentoring junior team members. 

While many candidates join seed-backed companies with the aspiration of becoming functional leaders, it is important to note that many startups will level up their leadership teams as they begin to grow. As a result, Founders and their Boards will often look for leadership hires who are more accomplished and have proven they can grow successfully.

Series A Round:

After a Series A round, the focus shifts to growing the product and the business. This is when the executive leadership team gets filled in: sales and marketing leadership, often product leadership

The persona of the candidate best equipped for this stage of build is someone who has done it before - an agile scrappy leader who can get the job done regardless of resource constraints, smaller budgets, and lack of branding. 

One of the most heartbreaking stories we hear from Series A Founders is the aftermath and fallout when they get bedazzled with the ability to attract a leader from a big company they admire, who comes in and is unable to work at the down-and-dirty, scrappy level needed. This is why we also tell our Series A clients to focus on leaders with a background and proven outcomes growing companies, not those with a background scaling already successful brands. 

Series B Round:

After a B round, the focus shifts to scaling the product and the business. At this point, leaders may be swapped for more accomplished leaders who have achieved outcomes "at scale." This is when Founders can go after those from bigger-name tech brands.

All parts of the org will grow, and processes will be introduced:

As a tech startup grows and raises more capital, the company's focus changes, and so do the types of hires. Founders need to understand the different stages of hiring that follow each investment round in order to make strategic hires that align with the company's needs.

If you’re struggling to determine the right persona and experiences or struggling to attract those personas to your startup, we can help! Book a consultation to learn more about our recruitment services and see some of our recent success stories.