Busting the Myth: Higher Funding Doesn't Mean Faster Hiring in Startups
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Busting the Myth: Higher Funding Doesn't Mean Faster Hiring in Startups
If a startup raised a top quartile Seed round, Series A, B, & C, they typically would have grown headcount by about 6% in the last twelve months. The headcount growth rate for all other companies? About double at 12%. Here’s the catch : the difference isn’t statistically significant. In fact, comparing the headcount growth rates across top quartile fundraisers to bottom 3 quartile fundraisers, the result is the same. No statistically significant difference in headcount. The chart does suggest the delta between the top & bottom quartiles does widen with stage. But plotting the Series C size by headcount, the dispersed data underscores the point that great fundraises do not correlate to team size growth in this environment. Why look at headcount growth? It’s a proxy for financial success. Startups with more business than they can handle should be scaling their teams to satisfy market demand. What are some hypotheses for these data?
Thanks to Theory’s own Lauren DeMeuse for pulling together the data & to Terrence Rohan for inspiring it. |
Older messages
What the New Relic Sale Means for SaaS
Monday, July 31, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. What the New Relic Sale Means for SaaS Earlier today, New
The Paradox of AI and Data Roles: How Automation Will Increase Demand for Data Professionals
Friday, July 28, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Paradox of AI and Data Roles: How Automation Will Increase
The Pilgrims Raised 4 Rounds of Financing
Monday, July 24, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Pilgrims Raised 4 Rounds of Financing The Pilgrims who
Operating in the Dark
Thursday, July 20, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Operating in the Dark For many startups today feel like they
Producing Charts with AI
Tuesday, July 18, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Producing Charts with AI Last Monday, I published a chart that
You Might Also Like
🗞 What's New: YouTube just launched Hype to help small creators get discovered
Thursday, September 19, 2024
Also: Running newsletter ads!
SaaSHub Weekly - Sep 19
Thursday, September 19, 2024
SaaSHub Weekly - Sep 19 Featured and useful products Schedul Threads logo Schedul Threads Boost your Threads following, reach monetization status fast and automate your Threads content publishing for
95 new Shopify apps for you 🌟
Thursday, September 19, 2024
New Shopify apps hand-picked for you 🙌 Week 37 Sep 9, 2024 - Sep 16, 2024 New Shopify apps hand-picked for you 🙌 What's New at Shopify? 🌱 New granular staff permissions for Gift cards Improvement ⸱
[SaaS Club] How firing customers built a 7-figure SaaS
Thursday, September 19, 2024
The SaaS Club Newsletter Hey Reader Here's a quick round up of what's been going on at SaaS Club: In this week's newsletter: 🎧 Discover how firing customers fueled SaaS growth 📈 Turn
The MrBeast Guide
Thursday, September 19, 2024
Today's newsletter is brought to you by LCA. We help companies build their future. From new products to websites, apps, and AI solutions. We work with businesses doing $10M-$10B in revenue. We
Writing Software for Robots
Thursday, September 19, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Writing Software for Robots In a few years, most feature flags
KoppieOS, ScrapX, Notch, Magic Inspector, and Entyx
Thursday, September 19, 2024
KoppieOS, where Ai meets Personality. BetaList BetaList Daily Magic Inspector Automate browser testing in natural language KoppieOS KoppieOS, where Ai meets Personality. ScrapX Monitor your competitors
“I’m waiting for the right time”
Thursday, September 19, 2024
Read time: 1 min. 03 sec. "Hey Pat, can I talk to you for a second?" My buddy pulled me aside at a wedding last weekend. I already knew what he wanted to ask... "I really want to do what
Mastering Portfolio Construction
Thursday, September 19, 2024
How to build a strategy that maximizes returns. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
join me: Big Tech in Fintech
Thursday, September 19, 2024
thought you would be interested Hi there, Laura here, Principal Analyst at CB Insights. Thought you would be interested in this new briefing on big tech's activity in financial services. In under