How startups can take advantage of big tech layoffs

How startups can take advantage of big tech layoffs

Amid the current correction in the global market, there have been a series of layoffs for large, growth-stage tech companies as they shore up balance sheets and cut costs. As a result, there has been an increase in experienced, high-profile talent available to startups with room to hire.

This presents a huge opportunity for companies that have just raised a round before the window closes, or startups that have adopted the “always alive” mentality for their finances. Just six months ago, the number of highly talented software developers, engineers, marketers and other professionals in the market was always low.

Hiring was (and to some extent still is) the biggest challenge for startups looking to grow their teams and hire experienced teams. This is changing fast.

For seasoned developers, there’s long been an important trade-off to be made when considering your next job. The stability, security and high salaries of big tech companies make a compelling case. But startups that offer lucrative packages of stocks and options present real potential for a straight shot for people willing to take a little more risk. In light of the recent layoffs, that calculation has changed.

That comfort and stability was called into question, making risk tolerance of moving into a startup role a little less daunting. I’m already seeing senior developers who have been inside the walled garden of big corporate tech seeking positions at young tech companies, offering deep exposure to the companies’ massive growth potential.

Developer salaries remain high, even at startups, so the cost/benefit of taking a chance on a young company seems pretty good these days and in these assessments. For startups looking for technical leadership, there is currently a great opportunity to hire people with experience in growing and managing teams through moments of scale.

For years, this talent pool has been extremely small and competitive, forcing startups to develop in-house (and possibly less experienced) leaders for this role.

acquisition potential

Now, with the influx of talent hitting the market, startups are experiencing a huge opportunity to prepare for efficient growth by hiring some of these recently laid-off developers.

But does not stop there. Given the amount of highly capitalized startups, I suspect we will see a massive increase in the amount of lease acquisition deals. For companies with valuations of $50 million or less, the odds of closing an acquisition deal are increasing—and fast.

For startups looking to grow quickly, it is more possible today than it was in nearly a decade to hire a senior technical lead and hire a team of engineers. This strategy can take your product to the next level of scale without all the inefficiencies associated with bringing the team together one person at a time.

What else is out there?

As always, these market corrections will drive undercapitalized companies out of existence, while also giving well-positioned companies a chance to fill the void and take off when the economy starts to grow again.

Even strong companies with great teams and great products can be in a position where an unexpected rental acquisition deal looks extremely attractive. Especially true if they can’t close the funding needed to take their business to the next level. To the capital-efficient winners will go the spoils.

Related post

Mappin, Mesbla, Arapuã: Why do massive shops break a lot in Brazil?

Mappin, Mesbla, Arapuã: Why do massive shops break a…

The crisis in Americanas is reminiscent of Brazilian megastores that went bankrupt, especially in the 1990s and early 2000s. Why do…
Towards layoffs, Gupy launches instrument for corporations that need to promote staff

Towards layoffs, Gupy launches instrument for corporations that need…

New feature of the HR startup will facilitate internal selection processes with the creation of an exclusive vacancies page for employees…
Girls shun male-dominated startups

Girls shun male-dominated startups

Women make up less than 15% of the workforce at at least one in five startups examined in the report, indicating…

Leave a Reply

Your email address will not be published. Required fields are marked *