🚀 The technology gold rush is over, and a new era of leaner startups has begun. LLMs are disrupting how startups leverage the capital markets, allowing founders to do more with less. DK Burnaby, HCS, GPHR and I are watching this happen in real time and have some thoughts about how this impacts back office organizations. ✨ Key highlights include: * How AI is dropping the costs of starting and running a business * The end of endless VC rounds and the rise of revenue-driven scaling * The evolving role of mid-stage financing and its implications for startups and VCs * The impact this is all having on the lean startup's strategy on Ops and Finance * Strategies like outsourcing, near/off-shore hiring, and fractional senior level talent to maximize efficiency and minimize costs Read the first article in a new series from myself & DK, and learn how you can apply these strategies to your own company. Check it out --> https://lnkd.in/gCurY_ui #fractionalCFO #FractionalExecutives #LeanStartups #Outsourcing
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Interesting outtake on the liquidity of ESOPs. When you are offering ESOP are you being transparent with your hires on what they can expect to earn, and when? It's commonplace to use ESOP or Equity as a way to attract your talent when you have limited cash, but it's imperative that you also create a robust and ethical framework around what your employees can expect in terms of ongoing value. Employees looking to move into a new role, don't get stitched up, #knowyourvalue.
Are startup employees getting screwed? The short answer is: YES. But it hasn't always been like this.... Tianyou Xu and I have been researching the startup economy and found some concerning trends in the data: 1) Companies are staying private for longer. Average time from Seed funding to IPO is now 12 years, compared to 3-6 years in the 1990s. Amazon: Raised $8M (Founded: 1994, IPO: 1997) Google: Raised $25M (Founded: 1998, IPO: 2004) SpaceX: Raised $9.8B (Founded: 2002, IPO: ?) Stripe: Raised $8.7B (Founded: 2010, IPO: ?) The 4 year vesting cycle made sense back when companies IPO-ed sooner. These days, many employees are stuck with a large % of their net worth in illiquid assets. 2) Most employees are misinformed on the value of their stock options. Due to Rule 701, many startups do not need to disclose financial information to their employees, leaving them in the dark. Without the necessary information (such as liquidation terms and preferences of investors), there's no way employees can calculate different exit scenarios for themselves Many startup employees overvalue their stocks as a result. Take this recent post below by Mike Adams. His initial "$300K worth" of options were technically always worthless. https://lnkd.in/eiXBsGvF 3) Startup employees are not fairly compensated for the risk they take. Despite the added risks, early employees are often compensated with 100-200x less equity than founders. (See attached graphic from Peter Walker at Carta) In a world where AI allows companies to scale with less capital & less employees, these crucial early employees deserve more. The status quo needs to change! We're working on some early solutions to this problem. Check out our recent blog post below to learn more. And make sure to follow Tianyou Xu for more startup insights. He spearheaded the research for this one 👇 https://lnkd.in/erEteR8T #startups #venturecapital #entreprenuership
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FictionalTech Achieves $1.2 Billion Valuation Just 4 Years After Launch https://lnkd.in/enJcvK4p SaaS HR leader FictionalTech has reached elite "unicorn" status after a $150 million Series C round led by Meritech valuing the company at $1.2 billion. Since launching in 2018 with a vision to transform enterprise talent management, FictionalTech has pioneered AI recruitment and analytics solutions now used by over 1,200 leading global brands. "When I started FictionalTech, I saw firsthand the need for innovation in unwieldy legacy HR tech," said founder Jane Doe. "I'm thrilled to have helped HR leaders globally through our cloud platform - and this is just the beginning." FictionalTech will leverage the new funding to deepen automation capabilities and accelerate customer acquisition abroad. Read more about the rapid 4-year journey from garage-based MVP to billion-dollar leader. #unicorns #startups #fundingnews #growth
From Garage to Unicorn: The Playbook That Fueled a Billion Dollar Startup
starthawk.io
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Chief Commercial Officer @ ReachX | Digital Investment Banking & Advisory platform supported by proprietary technology | Future of Work Platform for Financial Services
In the fast-paced world of startups, securing top-level executive expertise can be a game-changer for achieving milestones and driving growth. However, the cost and commitment of hiring a permanent C-suite team member can be prohibitive for many companies, especially early-stage startups with limited resources. Check out our recent blog post on the topic https://lnkd.in/ejfR-n_r
The Emergence of Fractional C-suites in the Startup World
reachx.co
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Explore "Interesting Insights into Operations and Strategy" by Richard Cadman an article delving into the dynamic evolution of operations and strategy within tech startups of different scales. It proves to be a valuable resource for those navigating the growth of their company or aiming to enter these job domains. Zeal Advisory specializes in providing consulting services for strategy and operations, coupled with expert career guidance. Connect with us to elevate yourself or your company. Discover how Zeal Advisory can set the stage for success in operations and strategy. 🚀 #ZealAdvisory #BusinessGrowth #OperationsStrategy #TechStartups #CareerOpportunities #LinkedInPromo #ExploreWithZeal https://lnkd.in/gR7uf5RS
What does ‘operations’ mean at a tech startup?
medium.com
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It is a common pattern that start-up teams are incomplete. This is especially true for deep tech startups. An incomplete startup team refers to a group of individuals who have come together to start a new business venture, but who lack one or more key roles or skill sets necessary for the success of the company. The missing positions may vary depending on the specific business idea and market, but in the deep tech area typical patterns include missing roles such as: 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴/𝗦𝗮𝗹𝗲𝘀 𝗟𝗲𝗮𝗱: This role is responsible for defining the Go-To-Market plan, promoting the startup's brand, identifying target customers, and developing marketing strategies to attract and retain customers. Without a marketing/sales lead with descend level of experience, the startup may struggle to find its first customers and generate revenue. 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗟𝗲𝗮𝗱: This role is responsible for managing the day-to-day operations of the startup, including logistics, supply chain, customer service, and financial management. Without an operations lead, the startup may lack operational oversight, get lost in some details, and struggle to keep the business running smoothly and efficiently. 𝗟𝗲𝗴𝗮𝗹/𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗟𝗲𝗮𝗱: This role is responsible for ensuring that the startup complies with all relevant laws and regulations, protecting the company's intellectual property, and managing any legal disputes that may arise. Without a legal/compliance lead, the startup may face legal issues that could threaten its existence. An incomplete startup team may still have some members with overlapping or multiple roles, but the absence of one or more key roles can significantly hinder the startup's progress and success. It is essential for the startup to identify the missing roles and seek to fill them as soon as possible. What makes the situation more difficult for deep tech startups than startups from other domains is the fact, that by the complexity of the deep tech sector, a founding team usually requires expertise from various technical roles and therefore is multi-disciplinary in the technical domain already. To keep the founding team small and decisive the deep tech domain makes it more complicated to cover the other key roles. #team #deeptech #startups #techstartups #management #businessdevelopment #sales #marketing #operationsmanager #compliancemanagement #salesandmarketing #businessandmanagement
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Performance-Driven Digital Marketer | PPC | SEO | SEM | SMM | CRO | Sales | Digital Project Management
#Resource #Optimization Key to Sustainable Growth in Startups As a startup founder, managing costs effectively is crucial to long-term success. Over the years, I've seen many promising ventures struggle and even close due to overhiring and poorly optimized roles. Optimization isn't a one-time fix but an ongoing journey that ensures every resource yields maximum outcomes. At NX3 Digital, we prioritize smart working over late sittings and overburdening our team. By carefully managing and optimizing roles, we not only control costs but also enhance productivity and employee satisfaction. Remember, it's not just about how hard your team works but how smartly they work together. Continuously optimizing resources allows us to stay agile, adapt to market changes, and innovate consistently. Let me share an example from my experience in startups: In startups, there's often a temptation to fill every possible role from day one. However, I've learned that it's more effective to hire a Head of Department (HoD) who can manage the team until the business reaches a sustainable position. This approach avoids unnecessary overhead costs and allows the team to focus on core priorities without being overly structured prematurely. Remember, the key is to evolve and adapt as the business grows, ensuring that every role and resource contributes effectively to the overall mission. This mindset not only promotes sustainable growth but also positions the startup for scalability and resilience in a competitive landscape. #ResourceOptimization #StartupSuccess #SmartWorking
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Flexibility in hiring is essential for the growth of your Start-up. ⬇ 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐫𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬 | Start-ups and scale-ups often operate with limited resources. So, instead of committing to long-term hires, deploying skilled experts to tackle your growth plans and manage your People org precisely, when and where needed ensures an efficient utilisation of funds. 🤸🏽��️𝐀𝐝𝐚𝐩𝐭𝐚𝐛𝐥𝐞 𝐧𝐚𝐭𝐮𝐫𝐞 | The biz landscape for Start-ups and Scale-ups is dynamic! Needs are constantly changing. A FLX deployment model provides these communities with agility to scale up or down in response to market fluctuations. 💰 𝐂𝐨𝐬𝐭-𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲, 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐨𝐧 𝐭𝐨 𝐪𝐮𝐚𝐥𝐢𝐭𝐲 | VC backed start-ups, in particular, are under some serious budget constraints. FLX deployment models allow these communities to access industry leaders within People and Talent without the financial burden of traditional hiring. Start-ups and Scale-ups can tap into industry experts when they need them. 𝐅𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐜𝐨𝐫𝐧𝐞𝐫𝐬𝐭𝐨𝐧𝐞 𝐨𝐟 𝐀𝐉 𝐅𝐋𝐗. 𝐖𝐞 𝐚𝐢𝐦 𝐭𝐨 𝐞𝐦𝐩𝐨𝐰𝐞𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐭𝐨 𝐧𝐚𝐯𝐢𝐠𝐚𝐭𝐞 𝐭𝐡𝐞 𝐝𝐲𝐧𝐚𝐦𝐢𝐜 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 𝐨𝐟 𝐭𝐚𝐥𝐞𝐧𝐭 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐞𝐚𝐬𝐞 🚀 #flexibility #talentsolutions #startup #scaleup
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What do CEOs need to spend more time on? Sam Altman of OpenAI says 𝗵𝗶𝗿𝗶𝗻𝗴. When it comes to startups, founders do great by… Staying lean and resourceful as they grow. And once they’re sure things are working… They can scale and grow big as fast as possible. But this is when most CEOs start to hire mediocre people. Don’t rely on the hope your starter team rubs off on them. And don’t think that training them will be enough. The team you build is the company you build. Regardless of how big your company is. Sam Altman’s formula: Great People + Great Product = 90% chance of success To do this, you’ll need to spend 40-50% of your time building your team. You always need to be hiring great people and retaining them. What do you think? 💬 Full video shared here: https://lnkd.in/gCMWtVi3 #founders #investors #venturecapital #privateequity #startups #i5invest 𝐖𝐡𝐨 𝐢𝐬 i5invest: We are a corporate development firm with access to 150K+ top decision-makers in Strategy, Business Development, and M&A. We provide innovative tech founders with insights, expertise, and access to our network to take their companies to the next level.
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Technology Executive | Amplify Founders | Venture Funded Early Stage Tech Co | Figure It Outer | Culture Builder | Seeker of Knowledge and Connections
Some people think a startup doesn’t need a COO. But I believe that having a COO is beneficial at the startup’s early stage. Scaling brings complexities, and founders often spend up to 40% of their working hours on tasks not generating income. A COO can take those tasks off the CEO’s shoulders, allowing the latter to focus on building a great product. In other words, every Mark Zuckerberg wannabe needs a Sheryl Sandberg. Most COOs’ expertise is in a specific business function. However, unlike corporations, startups need a COO to cover multiple responsibilities — from finance and marketing to supply chain management. As a company grows, the role remains cross-functional. Source: https://lnkd.in/g_rXERXK
How To Hire A COO For Your Startup In A Generative AI Era
news.crunchbase.com
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CEO, Marketing Moves | Recruiting the world's best tech CMOs | mday@marketingmoves.com | +44 (0) 20 3911 6757
1mointeresting read, thanks DK Burnaby, HCS, GPHR