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Early & Growth Stage Startup Founder Recruiting Insights

The Most Expensive Line Item in Venture Isn’t on the Cap Table — It’s the Compounding Cost of Human Capital Mistakes
Startup Recruiting Strategies Kraig Ward Startup Recruiting Strategies Kraig Ward

The Most Expensive Line Item in Venture Isn’t on the Cap Table — It’s the Compounding Cost of Human Capital Mistakes

Human capital risk is not invisible. It is unmanaged. After reviewing dozens of portfolio hiring patterns and pressure-testing them against real board dynamics and founder strain, a clear pattern emerges. Most funds underwrite product and market risk rigorously while assuming people risk will sort itself out. It doesn’t. Early mis-sequenced hires create quiet drag. Leadership gaps stretch founders thin. Reactive recruiting narrows optionality and increases burn. The signal is subtle but compounding. Momentum slows. Hiring quality drops. Execution strain rises. Not because the opportunity is weak, but because orchestration is missing. Human capital discipline is not a recruiting expense. It is a leverage decision. When managed deliberately at the fund level, velocity improves across the portfolio. When it is not, friction compounds at the exact moment scale requires precision.

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