The hidden pitfalls of early-stage startup recruitment

Imagine you are at a point in your career where you have begun to provide significant value to your employer. You have navigated the early years, figuring out what you want, what you enjoy doing, and what you excel at — enough for someone to pay you handsomely. You could be working in a large, well-known global business with lots of perks, a local corporate with a clear future, or even a fast-growing business that is the latest thing in the news.

Then, out of the blue, a message comes through on LinkedIn from an internal recruiter. Nowadays, this is not unusual at all. The role sounds intriguing; it matches your skillset, the title seems like a step up, and it captures your attention. However, it does not mention the salary, but it does mention words like ‘startup,’ ‘early-stage,’ ‘fast-growing fintech,’ ‘adtech,’ ‘regtech,’ and other buzzwords. 

So, you do what anyone would do: you click on the link to the person who sent the message. Two things happen here: either it is a recruitment firm, and you have to decide if you want to go to the trouble of messaging back only for them never to respond, or for them to call and grill you on your experience without giving you any more real information. You question if you want to go through that again while feeling guilty about even taking the call. 

Alternatively, it is someone (internal talent/founder) working for a company you have never heard of, which apparently has between 5-20 employees (you discover this through LinkedIn). You are busy at work, so trying to spend time getting hold of the recruiter does not appeal. Also, you are quite content in your role, so why would you consider even entertaining the idea of working for a company no one has heard of and has an eight out of 10 chance of failing in the next two years?

This doesn’t work for startups

This scenario happens every single day, all over the world. I can tell you that 80% of those candidates will never come back to either the recruiter or the internal talent partner or founder. Considering how busy everyone is, it is doubtful that either the recruiter or founder will follow up on that person again.

This so-called headhunting method simply does not work for early-stage companies. It works for corporates or companies that people recognise; they already know what they feel about that company, so it really comes down to whether they want to work for them.

If you genuinely want to hire the best person, the kind that will help take your business from pre-seed to Series C, you have to completely rethink your approach. It is not about the role at this stage in a startup’s lifecycle; it is about the founder — who they are, what they stand for, and what type of culture they are likely to build with their personality. 

It is about the mission, the reason the company exists, the problem it was created to solve. You need to be able to articulate why this business came to be, what has happened so far, where you are now, and most importantly, where you are going as a business and how this person you are approaching would fit in. The actual role should be the last thing you discuss because, as we all know, the role will change 15 times in the next 18 months.

It took me 20 years of recruitment and 18 months of running The Nudge Group to find a quick and effective way of doing this for pre-seed to Series B companies. After 2.5 years of using it, the results have been extraordinary. Finding the right person who not only believes in the business but also creates a massive impact has been one of the most rewarding achievements of my recruitment career.

Recruitment for early-stage startups requires a fundamentally different approach than for established companies. The process needs to be founder-centric, mission-driven, and future-focused. It’s not just about filling a role; it’s about finding someone who believes in the business, can create a significant impact, and is prepared for the role’s inevitable evolution. By adopting this approach, I have found success in recruiting for pre-seed to Series B companies, and it has been incredibly rewarding. If you are an early-stage startup looking to hire, I encourage you to rethink your approach and focus on what truly matters: the founder, the mission, and the future.

Steve Grace is the founder and CEO of The Nudge Group and CEO of Balance the Grind.