Who to Hire First: Insights from the Front Lines of UK Tech Startups
- Publish Date: Posted about 2 months ago
- Author: Jonathan Moran
Navigating the First Funding Round: Key Hiring Decisions
In the thrilling yet challenging world of tech start-ups, closing the first funding round marks a significant shift. As the focus transitions from mere survival to scaling and growth, one pressing question arises for founders: "Who do we hire first?"
Having engaged with numerous businesses across the North—some of which have recently closed their funding rounds—I've gathered compelling data and insights to help answer this question. Based on both hard data and firsthand accounts, here’s a guide on hiring priorities for UK tech start-ups.
1. Software Engineers: The Backbone of Tech Startups
It's no surprise that in the UK, 34% of seed-funded tech start-ups prioritize hiring software engineers first. This trend is underscored by the fact that many founders themselves have technical backgrounds. However, as their focus inevitably shifts towards broader business challenges, the need for a robust engineering team becomes crucial. Hiring skilled software engineers not only helps in maintaining momentum but also in future-proofing the business against technical debt, according to the Tech Nation Report 2023.
2. Sales & Marketing: Generating Traction Early On
About 25% of startups channel their initial hires into sales and marketing roles. This strategy is particularly prevalent among SaaS companies where the product is developed and ready for market entry. Early investment in sales and marketing helps create awareness and drive initial customer engagement, vital for gaining traction in competitive markets, as highlighted in the Beauhurst 2022 Report.
3. Product Managers: Bridging the Gaps
When technical and sales capabilities are secured, approximately 15% of start-ups bring in product managers early in the cycle. My observations align with findings from Nesta’s 2023 UK Tech Survey, noting that product managers play a crucial role in bridging the gap between what the founders envision and the market needs. This position is critical for aligning product development with customer expectations and business objectives.
4. Customer Success & Operations: Supporting Growth
As the startup ecosystem matures, the roles of customer success and operations become increasingly important. SeedLegals' 2023 study found that 13% of start-up's focus on customer success to ensure user satisfaction and retention, essential for sustainable growth. Meanwhile, 8% of firms prioritize operations and finance roles to build a solid foundation for business scalability, supported by insights from the Beauhurst 2022 Report.
Engaging the Community
I'm keen to hear from other founders about their hiring strategies and experiences. Whether you're in the midst of closing a funding round or have recently embarked on this journey, your perspectives are invaluable. How does your approach align with these insights?
Interested in more insights and discussions on tech start-ups? Visit Better Placed for regular updates and expert advice tailored to the UK tech scene.
