Series A closes, then the hiring bill arrives
For many startup leaders, closing a Series A is supposed to mark the end of uncertainty. The money lands, the runway extends, and the next chapter—scaling—begins. But in practice, the week after the wire hits is when a different kind of risk spikes: hiring.
Founders commonly interpret a new round as a signal to accelerate recruiting immediately, often by calling agencies or stacking multiple recruiters on urgent searches. Talent specialists warn that this instinct can become one of the most expensive mistakes a company makes during its growth phase, especially in Europe’s increasingly competitive market for senior technical roles.
Industry estimates suggest recruiting costs can quietly consume 15–20% of a fresh round before teams fully notice. Traditional agency models typically charge 20–25% of first-year compensation per placement, a figure that escalates quickly when companies are hiring across engineering, product, and go-to-market functions. Add the opportunity cost of long searches, the leadership time spent interviewing, and the compounding damage of a poor hire, and the total bill can exceed what many Series A plans assume.
Three recurring mistakes founders make
1) Treating hiring as an event, not a function
At seed stage, recruiting can be highly network-driven: founders hire a few people they already know or can reach through warm introductions. That approach often breaks down when a company needs to add dozens of employees in a year.
Scaling companies that hire efficiently tend to treat talent acquisition as operational infrastructure. Instead of reacting to vacancies, they build repeatable systems: clear role definitions, structured interview loops, consistent scorecards, and a pipeline of candidates cultivated before roles are officially open.
In Europe, the push toward deliberate hiring has become more pronounced. The Atomico State of European Tech report noted that early-stage companies saw a 35% drop in hiring rates in 2025, as founders prioritized leaner and more intentional teams. The shift suggests that, rather than hiring aggressively by default, many startups are focusing on capability and productivity per headcount.
2) Optimising for speed over repeatability
When early hiring cycles drag on—particularly for engineering roles—the reflex is to pay for speed: more agencies, premium retainers, compressed interview processes, and rushed decisions. While this can sometimes fill an individual role faster, it may worsen the overall system.
The reason is compounding. Brute-force speed does not compound; every new hire remains a bespoke, expensive search. What does compound is a recruiting engine: reliable sourcing channels, calibrated interview loops that predict performance, and compensation frameworks that help close offers without weeks of negotiation.
One model gaining traction in Europe is embedded recruiting, where companies bring in dedicated recruiters who operate like an extension of the internal team rather than charging per placement. Proponents argue that the approach helps preserve institutional knowledge, standardize processes, and reduce the churn created by ad hoc agency engagement.
3) Ignoring Europe’s talent dynamics
Remote-first strategies can create the impression that geography is irrelevant. In practice, regional dynamics still shape timelines, offer structures, and candidate expectations—especially in hubs such as Berlin, Amsterdam, and Zurich.
The Atomico report found that the proportion of new hires in AI/ML roles rose 88% in 2025 versus the previous year, intensifying competition for engineers with production experience. At the same time, the net inflow of senior tech professionals into Europe has been edging toward zero, while large technology companies continue to recruit experienced engineers with compensation packages many startups struggle to match.
Local norms add further complexity. In Germany, candidates often have notice periods of three to six months, affecting start dates and project planning. Across Europe, equity can be valued differently than in the US, pushing startups to design total compensation packages that balance cash, upside, and stability in ways that fit local expectations.
What successful Series A founders do differently
Hiring specialists say the strongest Series A operators share a counterintuitive habit: they invest in recruiting capability before the pain becomes acute. Rather than waiting for a headcount plan to become urgent, they assign ownership early—often placing talent acquisition under a founder or a senior leader even if the role is part-time at first.
They also build outward-facing assets—such as employer brand narratives, role pages, and consistent messaging—during quieter periods. Crucially, they start forming relationships with candidates months in advance, so that when a role opens the company is not beginning from zero.
Finally, they choose partners and processes that can scale. Instead of engaging agencies transactionally, they look for repeatable support models and build standardized interview loops that can be delegated without sacrificing quality. The goal is to avoid a common late-stage realization: trying to build the plane while flying it.
A more mature ecosystem, and a tougher hiring contest
Europe’s startup landscape has matured rapidly, and the competition for talent has become more sophisticated. In that environment, founders who treat hiring as a strategic function—complete with systems, ownership, and market awareness—are more likely to preserve capital, move faster over time, and avoid the costly churn of mis-hires.
As Series A companies plan for aggressive growth targets, the lesson is increasingly clear: recruiting is not just a set of urgent tasks. It is infrastructure—and building it early can be the difference between sustained scaling and an expensive stall.
Related
