Startup has started hiring With VC cash pouring in and the job market heating up, however, many companies have been forced to cut talent and lay off workers in 2022 as they saturate their talent pools.
This is not a pattern companies want to fall into again when the market recovers and then rises. That may not be the case this time, as VCs are likely to start paying more attention to how companies spend their money on recruiting.
Many of last year’s massive layoffs were at big names like Amazon and Microsoft, but startups are also making big cuts. Some companies, such as Better.com, Bolt, and Vimeo, have gone through multiple layoffs in the past year. Many expect no slowdown in startup layoffs this year.
But there is hope that we will not see this again. According to Angelary, a professor at his School of Columbia Business, an angel investor, and his venture partner, founders typically give presentations explaining how they plan to spend their raised funds. A slide behind the deck of the , which describes the hiring plan. Traditionally, she said, this was a throwaway slide with little thought from her VC. But it’s not anymore.
“I’m not saying ‘Don’t hire me,’ you just have to double-click and see why,” Lee said. “What does he need $X billion for? Why does Chief Data need a scientist and an architect?”