The Startup Hiring Challenge: Your Biggest Constraint
You’ve just raised a RM 500K pre-seed check.
You have:
- RM 500K cash
- 1 co-founder
- 1 side hire (part-time)
- An idea that feels like it could work
What’s your biggest constraint?
Not money (you have RM 500K). Not the product (you’ve validated enough). It’s people.
You need your first 3 engineers in the next 2 months to stay on timeline. But:
- You’re not famous (no brand recognition)
- You can’t pay Silicon Valley salaries
- You have no recruiting team
- You don’t know where to find people
This guide solves that.
Why Startup Hiring is Different
Startup vs. Corporate: Different Playbook
| Factor | Corporate | Startup |
|---|---|---|
| Salary offer | Market rate (RM 150K engineer) | 20% discount (RM 120K) |
| Compensation | Salary + bonus | Salary + equity (0.5-2%) |
| Job security | High (company stable) | Lower (might fail) |
| Role clarity | Clear (defined job) | Fuzzy (lots of hats) |
| Recruiting speed | Slow (lots of rounds) | Fast (4 weeks target) |
| Who recruits | HR team | Founders (you) |
Why equity matters for startups:
- Can’t outbid corporations on salary
- But can offer upside (0.5-2% equity = RM 500K-2M+ if exit RM 100M+)
- Attracts people who want to be part of something
- Aligns incentives (they own piece of success)
Stage 1: Pre-Seed to Seed (Building First 3 People)
Who to Hire First: The Order Matters
Hire #1: Technical Co-Founder (or CTO)
Why first: Need to build product. You can’t do everything.
Profile:
- Hacker mentality (ships fast)
- Visionary (understands your vision)
- Usually founder or close friend
Offer:
- Equity: 5-15% (co-founder level)
- Salary: RM 100K-120K (below market, but equity makes up)
- Vesting: 4-year vest, 1-year cliff (standard)
Hire #2-3: First Engineers
Why next: You need product velocity. CTO can’t do everything.
Profile:
- 2-5 years experience (not junior, not too senior)
- Interested in startup/equity
- Quick learner (roles will change)
How to find:
- Referrals (best): Ask your network, CTO’s network (RM 5K bonus)
- Online communities: AngelList, Hackernews, Product Hunt
- Direct outreach: LinkedIn (message people directly)
Offer:
- Equity: 0.5-1.5% per person (split after co-founder)
- Salary: RM 100K-130K (20-30% below market)
- Vesting: 4-year vest, 1-year cliff
Timeline: 4-6 weeks per person
Founder as Recruiter: How to Do It Right
As founder, you’re the best recruiter because:
- You can tell vision (engineers want to work on something big)
- You can explain why (why this problem matters)
- You can offer equity (final authority)
- You can make decisions fast (no HR approval needed)
How to recruit 3 engineers in 8-12 weeks:
Week 1-2: Network
- Text 30 people: “Building X. Looking for strong engineer. Know anyone?”
- Get 5-10 warm introductions
Week 3-5: First hire
- Have coffee with 3-5 candidates
- Pitch your vision (not a job description)
- Make offer to best fit
- Close in weeks 3-5
Week 6-8: Second hire
- Repeat with different cohort
- First person now helping recruit
Week 9-12: Third hire
- Same process, 2 people now helping recruit
Key principles:
- Vision > job description: Tell them what you’re building, why it matters
- Equity is main lever: Can’t match corporate salary, but equity is real upside
- Speed matters: Recruit for 3-4 weeks, make offer, close. Don’t drag out.
- Referrals are best: Network pays off
- You’re the closer: Founder credibility is your advantage
Founder Recruiting Playbook: What to Say
First coffee:
“I’m building [product] to solve [problem]. Problem is [why it matters]. Here’s my traction [show data]. I’m looking for someone who wants to be part of this. Interested?”
If interested:
“Here’s the situation. We’re pre-seed with RM 500K. Runway is 12 months. We need to build product, get traction, raise Series A. If that works, your equity could be worth [ballpark RM 500K-2M]. Interested in exploring?”
When closing:
“I’m confident we can make this work. I need a yes from you. You can think about it 24 hours, but I need to move fast.”
Stage 2: Seed to Series A (Building Next 5-7 People)
The Seed Inflection Point (RM 1-3M raised)
You’ve built product. You have 3-5 paying customers. You’ve raised RM 1-3M seed funding.
New challenge: Need to scale faster. Need 5-7 more people in next 6 months.
Who to hire:
- Operations/Finance (1 person): Handle operations, fundraising prep
- Product/Design (1-2 people): Accelerate product development
- Sales/Growth (1 person): Get more customers
- Engineers (2-3 people): More product velocity
Equity Packages at Seed Stage
Example (assuming RM 50M seed valuation, 10M shares):
| Role | Seniority | Equity | Vesting | Salary |
|---|---|---|---|---|
| CTO | Co-founder | 10% | 4-yr | RM 100K |
| Engineer #1 | Full-stack | 1% | 4-yr, 1yr cliff | RM 120K |
| Engineer #2 | Backend | 0.8% | 4-yr, 1yr cliff | RM 115K |
| Product | First PM | 0.5% | 4-yr, 1yr cliff | RM 100K |
| Design | First designer | 0.4% | 4-yr, 1yr cliff | RM 90K |
| Operations | First ops | 0.3% | 4-yr, 1yr cliff | RM 80K |
What the equity means (Series A scenario):
- Assuming Series A at RM 300M valuation
- Engineer #1’s 1% equity = RM 3M value at Series A
- That equity worth RM 500K/year in salary equivalent over 4 years
Seed Stage Recruiting: Playbook
Month 1-2: Build your recruiting capacity
- Get 1 engineer dedicated to recruiting (10 hours/week)
- Consider recruitment agency for 2-3 hires
- Target: Hire 2 people
Month 3-4: Expand network
- Attend startup community events
- Post in Slack communities
- LinkedIn recruiting
- Target: Hire 2 more people
Month 5-6: Growth hires
- Use momentum to attract final 1-2 people
- Team helping recruit (referral bonus)
Recruiting channels at Seed:
- Referrals (40%): Team members, angel investors, mentors
- Agencies (20%): For specialized roles
- LinkedIn (20%): Post job, direct outreach
- Communities (20%): Startup communities, ex-employee networks
Common Startup Hiring Mistakes
Mistake 1: Hiring “Just to Scale”
Problem: You have money, so you hire 10 people in 3 months. No clear roles. People overlap.
Fix: Hire deliberately. Map out roles. Know why you need each person.
Mistake 2: Hiring Too Senior (Too Expensive)
Problem: You hire ex-Google VPs at RM 250K salary. But company only needs engineer level.
Fix: Hire for the role you need NOW, not the one you need in 3 years.
Mistake 3: Hiring Without Culture Clarity
Problem: You hire 10 people. Each brings different culture. No shared values.
Fix: Define culture/values before hiring. Filter for culture fit.
Mistake 4: Equity Confusion
Problem: You promise Engineer #1 1% equity. Then hire Engineer #2 for 0.5%. Engineer #1 gets angry.
Fix: Be transparent on equity. Explain reasoning (seniority, timing, market).
Real Startup Hiring Case Studies
Case Study 1: Fintech Pre-Seed to Series A (6 to 25 People)
Company: MoneyFlow (Founded 2023)
Phase 1: Pre-Seed (Hiring first 5 people, 8 weeks)
- Founder recruited 2 engineers via network
- Hired 1 designer via Product Hunt
- Total cost: RM 20K recruiting (referral bonuses only)
Phase 2: Seed (RM 2M) & Scale (Next 10 people, 16 weeks)
- Hired 1 part-time recruiter
- Used 1 recruitment agency for specialized hires
- Cost: RM 800K total
Phase 3: Series A (RM 8M) & Scale (Next 10 people, 24 weeks)
- Hired 2 full-time recruiters
- Built recruiting process
- Cost: RM 2.2M (recruiter salaries + agency)
Total journey (1 year): From 2 → 25 people
Case Study 2: B2B SaaS (Building to 8 People in 12 Weeks)
Week 1-2: Co-founder recruits via network Week 3-5: First engineer hired (RM 80K + 0.5% equity) Week 6-9: Second + third engineer via referrals Week 10-12: Designer + operations
Total: 8 people in 12 weeks, zero recruiting cost (all network)
Startup Hiring Rapid Playbook: 90-Day Action Plan
Week 1-2: Planning
- Define roles you need
- Define equity grants
- Define salary bands
- List your network (100 people you could recruit)
Week 3-6: First hire
- Personal outreach to 20 network
- Coffee with 5 interested people
- Interviews with 3
- Make offer + close
Week 7-10: Second hire
- First person refers friend
- Direct outreach to 10 new people
- Make offer + close
Week 11-14: Third+ hires
- Post on AngelList + Product Hunt
- Team helps recruit (referrals)
- Momentum builds
Key Takeaways
-
Your biggest constraint is people, not money or ideas.
-
Founder as recruiter is huge advantage (vision credibility).
-
Equity is main recruitment lever (can’t match corp salaries).
-
Network > job boards for early stage (people you know are best).
-
Speed matters (recruit, interview, close in 2-3 weeks).
-
First 3 hires = most important (culture, momentum, trajectory depends on them).
-
Hire deliberately, not just to scale (wrong people = wrong trajectory).
-
Culture clarity before hiring (shared values = great team).
-
Referral bonuses work (people trust referrals, cheaper than agencies).
-
Be transparent on equity (clarity > confusion).
Your First Hire: This Week
This week:
- List 100 people you know (network audit)
- Write 1-page “why we’re building this” (vision doc)
- Define first role (title, responsibilities)
- Define equity + salary for role
- Email 20 people: “Looking for engineer. Know anyone?”
Next 2 weeks:
- Warm conversations with 5 interested people
- Coffee with 3 people (pitch them personally)
- Make offer to best fit
- Close in 48 hours
About Weizhen Recruiters
Weizhen Recruiters helps startup founders build great teams.
What we do:
- Founder recruiting coaching
- Early stage team building consulting
- Specialized hires for startups (CTO, first PM, first designer)
- Equity package guidance
Our results with startups:
- Average time-to-first-hire: 6 weeks
- Average time-to-10-people: 6 months
- Retention at 12 months: 90%+
Learn more about startup hiring services →
Or book a free consultation with our team about your hiring strategy.
