While every employee is unique and has specific motivations for being involved in the startup, I believe the slowdown in hiring has allowed founders to refocus on building strong foundations with their employees and will, in the long run, increase the average startup employee tenure. □□ You can't find the right hires until you know exactly the values and the type of organisation you're building.įrom an investor's perspective, one of the best things I've seen about the 2023 VC market correction is a slowdown in hiring/scaling teams. Look for individuals who can connect with others and are natural team players. □□ Don't underestimate how important simply being easy to work with is. □□ Motivation rarely lasts, so hire people who focus on their personal operational excellence. The best hiring advice I ever received was from a founder who had grown his company from 6 employees to over 350 in 4 years. Whether the decision is who to hire, when to hire, who to retain, or who to let go, these decisions should be given the depth of thought they deserve. The hiring decisions you make as a founder have a huge impact on the trajectory of your startup. Looking at the data shared by Carta last week, the key finding to me was that 64% of startup employees have been at their current company for less than two years. Given the increased focus on Seed stage investing in the current market downturn, it'll be interesting to see how this impacts the Seed to Series A conversion metric.Īs a founder, how can you increase startup employee tenure? □ Investors want proof of latent demand: customers and revenue waiting to be unlocked through your proven product, marketing, and sales strategies. PMF is unique to every startup and can be tracked by data (retention analysis, organic adoption, etc), but the art of judging product-market fit comes from the ambient noise that surrounds a startup. The difference between a 10% MoM growth rate and a 20% MoM growth rate is the difference between ~3X growth and ~9X growth over the span of a year. The question some founders will be asking is what Series A VCs look for when making investment decisions. Only a handful of Seed–focused VCs which mostly led/co–led rounds, had a conversion rate of >50%. "Only 1 in every 4–5 companies converts from Seed to Series A." □Ī recent study by found that, despite the funding surge, the number of startups converting from Seed to Series A has barely changed between the 2012––18 Seed cohorts.Ĭompanies with a Seed–focused VC fund invested in their Seed saw a higher conversion rate of 1 in 3.
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