Why VC-Backed Startups Should Rethink Their Hiring Models

By Ryan Jones , Sales Director at Trust in SODA

The funding is there, and the product has traction. It’s time to start hiring, but the path from capital to capability isn’t as easy as it looks on the pitch deck.

Across the US, plenty of firms are finding out the hard way that their hiring models are built for steadier markets than the one we’re in today.

The speed of growth and intensity of competition turn outdated recruitment processes into expensive liabilities.

Here at Trust in SODA, we often find hiring managers ready to scale, yet the talent system they rely on slows them down. If this sounds familiar, it’s likely time to rethink the model.

Ryan Jones explores the embedded approach in more detail below.

The New Reality of Talent Scarcity

The US market continues to feel the weight of a tightening tech talent pool. Demand rises faster than the supply of people with hands-on experience in AI, data engineering, security, and product. 

It creates a cycle where every search takes longer and costs more.

SHRM say that around 70% of organisations still have trouble recruiting for full-time positions. We see this reflected in the pace and pressure of the searches we support, especially in VC-backed teams who need specialist talent long before the wider market can supply it.

When Traditional Hiring Models Clash with Scale

The default response is usually to push standards higher. More interviews, heavier assessments, and stricter criteria. 

There’s an irony in that the best candidates are often the least likely to tolerate slow processes. In high-demand areas like DevOps Engineering, Cloud Architecture, and Cybersecurity, specialists are hired to enable and unblock systems, so when the hiring process feels slow and convoluted, many see it as a preview of an ineffective culture. 

Scaling Ahead of Reality

There’s another challenge to consider. Many VC-backed startups recruit for the company they expect to become, rather than the company they are today.

It sounds strategic, but it often locks teams into searches for profiles that match a later stage of maturity, not the ambiguity of early growth.

Where this hurts most is in technical and commercial roles tied directly to product velocity. When a business is funded to hit milestones at speed, every unfilled role becomes a blocker.

The Embedded Hiring Solution: A Model That Supports Scale

Startups that grow with consistency tend to approach hiring differently. Instead of treating recruitment as a reactive function, they build it into the core of their operating model.

Embedded hiring shifts talent from a peripheral activity to a strategic engine inside the business. It gives founders access to specialist recruiters who understand the product, the roadmap, and the pace required to hit milestones.

The result is a hiring system that moves with the company, not behind it. Here’s some bonus myth-busting:

Myth 1: ‘Embedded hiring is the same as outsourcing recruitment.’

It isn’t. Outsourcing hands tasks off. Embedded hiring brings talent expertise inside the business, aligned to the product, pace, and priorities of the team.

Myth 2: ‘Embedded recruiters lack the technical depth we need.’

A credible embedded partner is built on specialist capability. They operate inside your systems, understand your architecture, and source for roles that generic recruiters can’t reach.

Myth 3: ‘Embedded hiring is more expensive than traditional recruitment.’

It often reduces cost. You replace unpredictable agency fees with a focused, long-term model that cuts time-to-hire and prevents costly delays to product delivery. Trust in SODA recently saved a client £280,000 on recruitment fees by providing an embedded hiring solution, and this is a project that’s still ongoing.

Myth 4: ‘We’ll lose control of our hiring if it’s embedded.’

You gain control. Embedded hiring gives founders visibility, consistent reporting, and a talent process that mirrors internal culture rather than competing with it. Plus, the best models, like Trust in SODA’s, are built to scale with your resource demands.

Stay Curious

Embedded hiring isn’t the answer for every team, and it shouldn’t be. But if your current model feels slow, reactive, or out of sync with your growth plans, now is a good moment to stay curious.

We’re speaking to founders every week who are exploring what a more integrated approach could look like. If you want to sense-check your own thinking, the Trust in SODA team is always happy to share what we’re seeing on the ground.

If you want more recruitment myths busted or you’d like to learn more about what the Embedded Hiring Solution looks like in action, please feel free to contact me directly: Ryan.jones@tustinsoda.com.