Are startups starting to rethink remote hiring?
New data from Carta shows that the percentage of new hires that live out-of-state (compared to company HQ) peaked at 60% in Q3 of last year. In Q4, in-state hiring made small gains.
So what's really happening?
The long-term takeaway is we underwent a dramatic shift in working location from 2019 to 2022. The steady rise of the teal line in the chart below demonstrates startups becoming more and more comfortable hiring out-of-state employees.
(Side note: we used in-state and out-of-state because judging whether an employee is fully remote or working at a satellite office is rather difficult. But the majority of startups in this dataset are small enough that having two offices makes little sense).
I'd say the remote hiring is here indefinitely - but certain startups may choose to prioritize proximity in the coming year. Maybe we see a 50/50 split by 2024?
Of course this doesn't take into account international hiring...but that will have to wait until we share the rest of our State of Startup Compensation report with you all tomorrow!
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DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
