If you’re a first-time founder, you’ve probably realized this already: hiring the right people is harder than raising money. Most startups don’t fail because of funding. They fail because they can’t build the right team.


Here’s what we think really works (and what has worked for many successful founders we’ve spoken with):

1. Hire through your own Network

Your network is your strongest hiring engine - especially for senior roles. Don’t underestimate the power of a simple LinkedIn or even Instagram post. People in corporate jobs are often frustrated with bureaucracy and secretly looking for their “startup break.” When they see a founder they trust, they’re willing to take the leap. Zerodha’s Nithin Kamath has shared how early team members came through personal networks, not recruiters. Their trust in him and his vision was the hook.

2. Look beyond Tier I Colleges

Chasing IITs and IIMs can drain your energy and budget. Instead, empower fresh talent from Tier II and Tier III colleges. Zoho famously recruits from rural colleges in Tamil Nadu, trains them and now runs a billion-dollar business with a deeply loyal workforce. This is frugality as well as smart thinking.

3. Keep the team Lean & multi-Hatted

A startup isn’t a corporate. Things will be messy, and that’s okay. Encourage your team to wear multiple hats—operations, product, marketing, sales, even customer success. With AI tools, this is easier than ever. Recently, we met a founder who listed his team on tinyteams.xyz - a platform showcasing startups that stay lean and scrappy. Basecamp (37signals) has been profitable for decades with a small, multi-skilled team—proving that lean can be powerful.

4. Be honest about Founder's Office roles

If you’re hiring for an all-rounder, don’t sugarcoat it. Call it a Founder’s Office role. These positions attract ambitious people who want high learning curves and direct founder exposure. Communities like Founder’s Office Club help connect startups with such talent.

5. Rethink Tech Hiring

Hiring a senior tech team early can burn your runway. Instead, outsource the first version, keep 1-2 junior in-house developers and let them learn by shadowing consultants until they’re ready to take over. Also, if AI can build your tech, then go the AI way. This way, you balance speed, cost and skill-building. Airbnb’s early MVP was built by outsourced developers, while the founders focused on design and customer experience.

6. Hire Slow, Fire Fast

Toxic hires can kill culture faster than lack of funding. Always do background checks for senior roles, even if it slows you down. Many YC founders say their biggest regret is not firing underperformers fast enough - it drags down everyone’s morale.

7. Understand Gen Z & Gen Alpha

If your team is young, speak their language. Be open to their culture—it breaks the ice and creates a stress-free environment. Be used to Gen-Z lingo like “situationship” from my Gen Z team. It sounds funny, but these moments build connection.

8. Reward beyond ESOPs

While ESOPs sound exciting, most employees worry about the uncertainty. Instead, try:

• Smaller, more frequent appraisals (don’t wait a year).

• Profit-sharing or revenue-linked incentives.

• Recognition in real-time.

Even a 10% surprise increment for great work can do more than a long-term ESOP. Freshworks scaled by giving early recognition and responsibility to young talent - not just equity promises.

Final Thoughts

Hiring as a founder is not about big cheques. It’s about trust, empowerment, and shared vision.

At Malpani Ventures, we’ve seen this across our portfolio - frugal, smart hiring beats flashy packages any day. If you’re a founder struggling with hiring or building culture, we’d love to connect and share what’s worked for other startups we’ve funded.