Quality is super funky so here’s the pdf links: the-learning-card the-test-card
Notes:
- VC’s dislike giving equity after seed stage funding. Recruiters often kicked out to save shares
- Average recruiter did a bad job
- Recruiter more interested in finding impressive looking people rather than what would help the company
- Company gets bigger, board of directors asks for outside search. Recruiter always picks outside executive rather than hire internal, causing people to leave
- Wanted to use Headhunters less and less
- Headhunters save good candidates for later so that later candidates look better
- Company recapitalizes in new levels of funding, kick out old regime and bring in new regime
- Investors bring in the people they want rather than founders because of diluted equity
- Some startups used talent firms for expansion plan/executive replacement plan
- Startups look for talent firms that specialize in a certain type of executive (AI, Sustainability, etc)
- When a new CEO comes in, bring in a new regime
- Not just one placement but multiple, those that get replaced also need positions
- Mainly look to hire CEO
- CEO’s get replaced:
- They don’t have the skills
- Have bad luck
- Liquidity event (IPO)
- Many founders are liquidity event averse
- Founders are techy and need someone with business experience to grow the company
- Investors change out
- For a high fee, work with CEO to not get replaced
- Equity stake could hedge against recruiters doing a bad job
