Should I secure investment before building my team?
Actually, it’s the opposite—you need to rally a team passionate enough to join your startup on a lean budget first. This foundational momentum often becomes the key to attracting investors.
Why You Need to Build Your Team Before Raising Money
Investors rarely fund ideas alone—they invest in people. As a founder, your ability to recruit and lead a strong team signals to investors that you’re capable of executing your vision. Without a team, it’s challenging to gain investor confidence.
Early-stage funding is a bet on the founder’s ability to build, lead, and scale. Even solo founders must demonstrate their recruiting potential by having key team members ready to join post-funding. The best teams often self-select—some will be ready to take the leap now, while others may wait until funding is secured.
Your job as a founder? Recruit relentlessly. The team you assemble early on is not only your foundation but also your ticket to attracting the funding you need to scale your idea into a thriving venture.

Hiring Playbook for Early-Stage Startups in ANZ
By Annie Liao & Archangel Ventures
Why Hiring Early is Hard
Early-stage startups face unique hiring challenges—lack of brand recognition, perceived risk, and finding talent aligned with the mission. As Tim Atkins (CancerAid) puts it, “The first 20 hires define your startup’s success.”
Key Insights and Solutions
1. Sequence Your Hires Strategically
Define roles clearly and focus on generalists early. Yash (Lyka) advises hiring adaptable, high-potential talent who can grow with your business.
2. Make Your Startup Attractive
Build a compelling narrative around your mission and culture. Showcase authenticity on social media, align hires with your “why,” and ensure every team member becomes a brand ambassador.
3. Leverage Effective Hiring Methods
- Referrals and Networks: Use personal and professional connections for trusted candidates.
- Talent Communities: Engage niche groups on Slack and Discord for specialized talent.
- Job Boards: Platforms like My Startup Gig offer wide reach.
- Social Media: Use personal accounts for authenticity and visibility.
- Recruiters: Ideal for senior roles or when time-constrained.
4. Offer Competitive Compensation
Balance salary, equity, and perks to attract and retain top talent. Equity, especially for early-stage hires, fosters long-term commitment.
Ben Armstrong (Archangel Ventures) reminds founders, “Rushing hires often leads to mistakes. A thoughtful recruitment process ensures the right fit, strengthening culture and performance.”

The Role of Team Development in Startup Funding
Building a strong team is critical for startups aiming to secure funding and achieve long-term success. Investors prioritize teams that demonstrate execution capability, risk management, and the potential for high returns. Here’s how team development supports funding and growth:
Key Highlights
1. Why Team Development Matters
- Investors seek confidence in a team’s ability to execute plans and manage risks.
- A strong, cohesive team signals readiness for scaling and attracts funding.
2. Stages of Team Development
- Ideation: Generate and refine the business idea.
- Development: Build the product or service.
- Launch: Take the product to market.
- Growth: Expand into new markets.
- Exit: Plan for acquisition or IPO.
3. Benefits of a Strong Team
- Attracts top talent and retains key players.
- Enhances collaboration and innovation.
- Builds credibility with investors.
4. Challenges in Team Development
- Attracting top talent amid limited resources.
- Managing diverse personalities and resolving conflicts.
- Maintaining motivation during high-pressure periods.
5. Tips for Building a Startup Team
- Define clear roles and responsibilities.
- Foster open communication and trust.
- Prioritize hiring adaptable, mission-aligned individuals.
- Invest in ongoing learning and development.
6. Case Studies
- WhatsApp: Scaled with a lean, dedicated team before its $19B acquisition.
- Slack: Focused on team strength from inception, growing to a $5B valuation.
Startups thrive when their teams are built with care, collaboration, and vision. A well-developed team not only executes effectively but also inspires confidence in investors, paving the way for funding and sustainable growth.
Building a strong team is the foundation of any successful startup. Investors prioritize people over ideas, seeking teams capable of execution, risk management, and scaling. Early hires, often made on a lean budget, demonstrate your ability to recruit and lead—a critical factor in securing funding. Focus on assembling adaptable, mission-driven individuals who can grow with your vision. By fostering collaboration, clear communication, and a compelling narrative, you not only attract top talent but also inspire investor confidence. Your team isn’t just your foundation—it’s your competitive edge and the key to turning your idea into a thriving venture.