Recruiting Team Members

Sean Ammirati

Partner, Birchmere VenturesAdjunct Professor, Carnegie Mellon University

#CMULean

A Team is a prerequisite for Success!

#CMULean

“No matter how brilliant your mind or

strategy, if you’re playing a solo game, you’ll always lose out

to a team.” Reid Hoffman,

Co-Founder & Chairman LinkedIn

Source: http://www.flickr.com/photos/joi/1431818434/sizes/l/in/photostream/#CMULean

Phases of Growth

#CMULean

Phases of Growth

# o

f Tea

m M

embe

rs

Founding Team

First Few Key Hires

Original Core Group

ScaleUp

#CMULean

Phases of Growth

# o

f Tea

m M

embe

rs

Founding Team

First Few Key Hires

Original Core Group

ScaleUp

#CMULean

Hacker+

Hustler

(sometimes + Designer)

In the beginning ...

#CMULean

Phases of Growth

# o

f Tea

m M

embe

rs

Founding Team

First Few Key Hires

Original Core Group

ScaleUp

#CMULean

Generalist who will act like founders

Whole digit % of company (fully diluted) from option plan

Sometimes even call them “founders”

First Few (< 5) Employees...

#CMULean

Reach into extended network ...

#CMULean

Phases of Growth

# o

f Tea

m M

embe

rs

Founding Team

First Few Key Hires

Original Core Group

ScaleUp

#CMULean

“T” type: deep expertise in one area but also ability to help on a lot of problems

This group creates the momentum around culture that is developing

Even managers are “player coaches”

Approximately 5 - 15 Employees

#CMULean

If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.

Edgar Schein, professor MIT Sloan School of Management

http://www.flickr.com/photos/31242051@N06/3957131735

#CMULean

#CMULean

Phases of Growth

# o

f Tea

m M

embe

rs

Founding Team

First Few Key Hires

Original Core Group

ScaleUp

#CMULean

CEO should still interview each candidate

Professional managers get involved to help scale

Still important team can handle ambiguity

Approximately 15 - 100+ Employees

#CMULean

Compensation

• Mix of equity (options) and cash

• How much is driven by the balance sheet

• If paying below market, make up with options / equity

• DO NOT defer compensation and put it on your balance sheet as a liability

#CMULean

https://angel.co/salaries#CMULean

Why do people join?

#CMULean

“Do you want to sell sugared

water for the rest of your life? Or do you want

to come with me and change

the world?”

Steve Jobs

http://www.flickr.com/photos/mateus27_24-25/6231257283

#CMULean

Interviewing

• Get to know the whole team

• Start looking at their historical work

• Then test in your environment

• “Try before you buy” whenever possible

#CMULean

Example: Interviewing a Developer

1. Filter resumes

2. First Interview: bring them in and ask them to bring their best code to review with you

3. Second Interview

• Pair program

• Take them to lunch / out for a drink

#CMULean