The key insight this week
We've all heard it: There's no better time to start your startup than now. This sage advice (which I agree with, for what it's worth) is usually accompanied by a few big logos of major tech companies founded in difficult moments.
So you're taking the plunge and starting up! Next question: who do you hire first?
Engineers, surely. And probably some product folks. And someone needs to sell this thing, right?
All true. But after looking through the functional breakdowns of thousands of startups on Carta Total Comp, it was clear to me that some functions are usually left out of the earliest part of the startup journey.
Only about 18% of startups valued between $1 million and $25 million on CTC have a dedicated design team member. Only 11% have an HR professional. Less than 7% have an accountant. And barely 3% dedicate a single headcount to legal.
Of course that doesn't mean those jobs aren't being done at these companies—they just fall in the broad menu of responsibility shouldered by other employees (or even by contractors). Perhaps the founders are also the HR department, or early product hires moonlight as designers in their spare time.
Personally I was a bit stunned to see data personnel below 10%—but then, I'm biased.
Compensation corridor
Heads up that you'll be seeing us in your inbox on Wednesday next week. We'll be sending the freshest copy of our State of Startup Compensation to you bright and early (20+ charts describing everything you want to know about tech employee compensation).
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Peter Walker
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