Carta’s Post

Despite a challenging 2023, startup compensation stabilized in 2024, with salaries rising slightly and equity packages holding steady. While founders remain cautious with new hires, the wave of layoffs in private tech has slowed. Join experts from Carta, SignalFire, and White & Gale Consulting on August 20th at 10am PT / 1pm ET to dive into the latest trends in startup compensation and hiring. Register here ➡ https://lnkd.in/gqdhNZK9 #compensation #startups #equitycomp #startuplayoffs #hiring

Have you been wondering what the layoffs in the tech industry mean for startups? More than 191,000 workers at U.S.-based tech companies were laid off in mass job cuts in 2023. But how has this trend been impacting fundraising for startups? Read Finta's latest blog post to learn how this matters for founders in today's market:  https://lnkd.in/gYr3qwsd

Apparently, layoffs are contagious - according to this NPR story: "If it appears as if an entire sector is experiencing a downward shift, Pfeffer argues, it takes the focus off of any single individual company — which provides cover for layoffs that are undertaken to make up for bad decisions that led to investments or strategies not paying off." #startupadvice #startupfunding #vcfunding #Startups #StartupEquity #StartupLeadership #layoffs

🚀 Quoala: The Little Company That Could 🚀 The tech industry has seen its fair share of ups and downs lately, with massive layoffs making headlines. As a startup, news like this can raise our blood pressure a bit. But at Quoala, we see it as an opportunity to be the little company that could! 💪 Our unique Say More Analysis process is a game-changer for feedback loops, and we're confident it will revolutionize the way companies connect with their employees. We're here to weather the storm and help organizations thrive, no matter the challenges they face. Read more in this NPR article: #TechLayoffs #StartupLife #Quoala #Feedback #SayMoreAnalysis #Innovation #TechIndustry #EmployeeEngagement https://lnkd.in/d2a9jTXU

We've been working with an amazing Chief of Staff candidate and they reached out to me a few weeks back asking about an offer they received from a Series A startup (not our client). It was below market on salary for her skillset and geo (IB + VC in NYC; far south of $150k), which is OK, but the expectation is that the equity will balance that out. Turns out the equity piece was paltry -- FAR south of 0.1%. There are Series C startups offering more than that. And there are Seed founders offering up to 1.5% to the right person (which is MASSIVE for non-technical, non-founding engineer employees). You can't offer below market salary *and* below market equity. Something has to give, ESPECIALLY for candidates like this who are down to dedicate 12-15 hours of their lives every day to build alongside you. Make them feel like an owner, because if they don't, they'll just turn down the offer (which they did). #chiefofstaff #recruiting

The massive layoffs within tech are tough to see. But it raises the question: for startups, were they hiring based on their valuations or their revenues? I think startups were hiring more based on the former rather than the latter, and now the bill is coming due. The grow at all costs mentality justified expanding ones workforce amid an advantageous fundraising environment. But that mentality risks founders becoming unmoored from the reality of how their business is doing. I’ve spoken to a few founders who have not had to do layoffs, and the common reason is that they hired according to their revenue. They didn’t let easy access to capital tempt them to double headcount overnight. And now these founders are in a prime position to grow as fast possible while others are trying to reduce their burn rate as quickly as they can.

Startups fret, targets unmet, funding winter puts jobs at threat Even the well-funded aren't immune. Startups are seeing layoffs, some due to missteps, others taking a cautious approach to weather the funding winter. Unfortunately, the Edtech sector, which saw the most funding, has been hit the hardest, with the highest number of layoffs. Other sectors have also seen significant reductions in staff, with an average of 14% to 18% being let go. Personally, I feel that the two main reasons for this are poor management driving unsustainable scale ups and preparations to sustain during the slow down. The question remains: is this a sign of a troubled economy or a chance to build leaner, stronger teams? #startup #edtech #jobloss #firing #layoffs

Recent layoffs across big tech are creating a wave of skilled talent in the market. But don’t get too comfortable. As more startups hit $1M ARR and beyond, the race to snag these top performers is getting more competitive. Relying on traditional recruitment agencies isn’t the answer—they're costly and don’t always understand the fast-paced dynamics of a startup. At Startup Resources, we specialise in supporting startups scale efficiently with cost-effective and personalized hiring solutions. The talent is out there—don’t miss the window to build your A-team while it’s open! 🔥 #TechLayoffs #HiringTalent #StartupGrowth #ARRGoals #HiringSolutions #StartupResources #ScaleSmart #TalentRace

Yes, I accept I'm a nerd, but I still get the Atlanta Business Chronicle newsletter (and yes I know I live in NJ). It includes reports on layoffs for large local businesses. However I've seen an interesting trend that startups are mentioned frequently, which mirrors the broader nationwide shift. GenZ highly entrepreneurial making startups a viable path. With low level positions being reduced and college becoming less of a viable option, it makes sense that young people are inclined to forge their own paths through startups rather than pursue traditional corporate jobs.  With a lot of middle management (i.e. GenX and Boomers) being laid off, positions eliminated or outsourced, it seems that there are fewer options.  But for Gen X and Boomers who have more responsibilities and are impacted by layoffs, is pivoting to entrepreneurship and startups a viable path forward when faced with unemployment? With so much competition for jobs, is that a safe enough bet when faced with unemployment? #genz #startups #layoffs #atlantabusiness

If a big company is laying people off, it's probably because of its shareholders. If a funded startup is laying people off, it's likely because they are running out of money. If a bootstrapped company is laying people off, it's often due to bad government policies. Note: A total of 10,655 MSMEs shut down in 2022-23; the highest in the last four years. There were 6,222 such closures in financial year 21-22; according to data released in Parliament. #layoffs