In this article, we will discuss why a hiring strategy should not be overlooked for early-stage startups and look at three examples from the new edition of the Launch Mappers Unicorn Report.

A strong hiring strategy can become an asset

For startups, hiring the right expertise can be a game-changer. Hiring experts with specific skill sets can strengthen the startup's offering.

By bringing in individuals with experience and knowledge in key areas, startups can improve products or services and gain a competitive edge. Ultimately, by investing in the right expertise, they can create a more robust and appealing offering, which can help them attract and retain customers, generate revenue, and ultimately achieve long-term success.

We can look at the Berlin-based startup Everstores, founded in 2022, which buys and scales D2C Shopify brands based in Europe. They are creating the next-generation solution dedicated to growing D2C brands by leveraging data-driven and automated processes. 

The team is impressive and brings together diverse skills and backgrounds. It comprises experienced professionals from various industries, including e-commerce, software engineering, and growth marketing. The CEO & Co-founder of Everstores previously worked in Investment Banking at Goldman Sachs and Private Equity. The Head of Acquisition also has experience in Investment Banking at JP Morgan.

Everstore's Head of Growth also has an interesting resume, having run his own Growth agency, bringing his experience working on multiple growth-focused projects.

By leveraging the strengths of each team member, Everstore has been able to develop a solid and innovative product, establish a loyal customer base, and achieve rapid growth.

A strong hiring strategy leads to better product development

A startup is only as good as its team, and a strong team can help a startup develop a better product faster. Early-stage startups often rely on a small team to build their product. However, as the startup grows, it needs to hire new team members to scale the product and meet customer needs.

So, hiring individuals with relevant industry experience can be incredibly beneficial early on because these profiles will bring valuable knowledge and skills to help avoid common pitfalls and make informed decisions quickly. As a result, companies can save a considerable amount of time and money that would otherwise be spent on trial-and-error learning. 

This is the case of the London-based startup Payable. Founded in 2022, this startup results from the fruitful collaboration between two previous Checkout.com employees. While working there, they identified the daily challenges treasury and payment teams face due to outdated manual processes.

The founders, Daniel Yubi and Razvan Musca understood how vital it is to build the right team to ensure a startup's success. So they've hired experts from innovators of financial services like Stripe, Truelayer and 11:FS. This new all-in-one solution disrupts how companies manage payment operations.

In the first year since its founding, the startup has demonstrated how highly regarded transparency is for them. They actively seek customer feedback and input to improve their platform and services continuously. Overall, their fintech expertise, diversity, and customer-centric approach sets them apart from other companies in the industry.

A growth-focused hiring strategy can help build strong foundations

Building a strong foundation is essential for long-term success. Having a growth-focused role on your team very early on can help startups build strong foundations. Imagine a world where teams are ready for new challenges and more easily capitalise on opportunities. 

Moreover, a growth-focused hiring strategy helps startups to create a culture of innovation and continuous improvement, enabling them to stay ahead of the curve and drive sustained growth over time. By investing in talent early on, startups can set themselves up for success and pave the way for future expansion.

We've observed the benefits of having a growth team early on at Sequence. The London-based startup, founded in 2022 whilst still in BETA, already had a team of 30 people. On top of that, their product was already used by major companies such as Deliveroo and Hopin. The company was able to grow quickly and, hopefully, sustainably.

The Sequence growth team is composed of experienced profiles within the B2B space and software. Naturally, their data-driven approach powers continuous experimentation and testing to optimise the company's growth. Today, if one requests early access to the Sequence platform, you'll first have a call with the growth team, highlighting their dedication to capturing user feedback for further iteration on the product or the customer journey.

This team structure is key to scaling quickly and sustainably, giving Sequence the competitive edge it already has. 

Early-stage startups shouldn't underestimate the importance of a strong hiring strategy. The examples of Everstores, Payable, and Sequence demonstrate how hiring the right expertise can be an asset, lead to better product development, and help build strong foundations for sustained growth. As tempting as it might be to hire more people that are less expensive, the value that experienced future employees can bring to the table will almost always outweigh the investment you will make in them. If there's one area where you shouldn't look for cheaper alternatives, it's recruitment!