Talent in Uncertain
Times Report

5. Talent in uncertain times: The early stage startup workforce

450+ Founders & Employees Share Key Data About The Early-Stage Startup Workforce

To highlight how the changing economic conditions are affecting innovators, we collected data from startup founders and their employees throughout April and May 2022. The goal was to identify changing trends in the workforce, including how market conditions are affecting startup hiring, employee motivations and the role of options.

Sneak peek
of selected highlights

CHALLENGE

Due to the interest rate hike, founder concerns rapidly shifted, with fundraising becoming the top concern

74% Founders

Worried about their ability to raise their next round

EXTENDING RUNWAY

To cut costs and extend their runway, startups changed their hiring strategies

  • 45% Slowing down hiring
  • 20% Freezing hiring
  • 4% Firing

Employees working for public companies

With the sharp fall in the price of tech stocks, public companies are dropping in popularity among employees

  • 49% Growth stage startup
  • 24% Early stage startup
  • 22% Global public company

Employee sentiment

The market slowdown still didn’t sink in for employees

  • 68% Not worried about their future in the company

Startup risk

33% of employees working in a startup is much riskier than before

With today’s uncertain market dynamics, employees are reassessing the risk level of working at startups. Some are more worried, concerned about the inherent instability of a new venture and the continual question mark around fundraising. Others see startups as less risky than before - given the turmoil of the once stable public markets, they understand that nothing can be considered safe in today’s environment.

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