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How to Recruit Better Software Engineers to Your Startup – ReadWrite

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Nate Nead


One of the biggest challenges in launching a successful startup is recruiting the right software engineers. With a team of talented, hardworking programmers on your side, you can rest assured that your vision – whether it’s a new app or something much more sophisticated – will become a reality. Without that team, you may never be able to achieve your full potential.

Unfortunately, there are many obstacles that stand between you and your dream team of software engineers, including a limited budget, a limited professional network, and an uncertain future. So what steps can a startup entrepreneur take to recruit better software engineers from day one?

Multiple Problems in One

Let’s start by breaking down the problem into its base components. If you can solve the following issues, you’ll be in a much better position to get the best possible people for your business:

  •         Getting better people. First and foremost, you need to hire the best possible people – the talented, experienced, and diligent candidates that are capable of helping you make your business vision a reality. If they don’t have the technical skill or the expertise to help you, nothing else will be able to close that gap.
  •         Getting people faster. You’re also likely working on a tight timeframe. You can’t afford to wait months, and certainly not years, trying to track down “unicorn” programmers. Most business owners are eager to get people in the door as quickly as possible.
  •         Staying within budget. If you had an unlimited budget, recruiting great programmers wouldn’t be an issue – you could just keep throwing money at the problem until it’s solved. Unfortunately, most startups are working with a tight budget that prohibits certain tactics – and puts a cap on the salary you can offer your prospective recruits.

Now let’s look at the strategies that can help you accomplish all three simultaneously.

Determine Your Needs

Before you start aggressively stepping up your recruiting efforts, have an internal meeting to clarify your business’s needs.

  •         Technical challenges. What exactly are you trying to accomplish? What is the technology you’re trying to build or improve? What set of skills do you need from your developers, and is there any flexibility on that skillset? What are the primary technical challenges you’re going to need to overcome?
  •         Budget. How much money are you willing to spend on this team? Keep in mind the costs of salary, perks, and benefits. How much are you willing to pay for the entire team, and what’s the best way to allocate that budget?
  •         Volume. How many people are you going to need? Is this the type of project that’s best engineered by a single, dedicated person? Do you need three different specialists working together with their respective areas of expertise? Or do you need a full team of different people collaborating to get the best results?

Make Your Startup More Attractive

The next step is to make your startup more attractive. The better your company looks, the easier it’s going to be to get people to apply to your jobs. If you’re lucky, the attractiveness of your startup will serve as its own inbound marketing channel. Otherwise, your startup’s position and reputation will solidify candidates’ desires to work with you.

  •         Start with the culture. It’s important to start with defining and solidifying your startup’s culture. Your company should seem innovative, open, and employee-focused; beyond that, your core values are your own decision. Different environments attract different people; some recruits will prefer an organization that’s fun and loose while others want something more dignified and polished.
  •         Offer competitive pay. It may be hard to do if you have a limited budget to work with, but do your best to offer a competitive salary. It’s still one of the first things job candidates review when deciding whether to take a job offer.
  •         Considering adding side benefits. If you can’t afford to pay a competitive salary, you may be able to close the gap at least slightly by adding peripheral benefits. For example, you might offer health insurance, retirement plans, or other advantages.
  •         Offer autonomy and flexibility. You can greatly increase your startup’s appeal by offering employees autonomy and flexibility. Even simple additions to the job, like including flex hours or the ability to work from home, can increase your recruiting potential.
  •         Present a path to growth and improvement. Most modern employees want to work for an employer with whom they can learn and grow indefinitely. Make it clear that your candidates will have the chance to develop themselves here.

Broaden Your Pool of Candidates

After that, you’ll need to work to broaden your pool of candidates. In other words, you’ll need to find more people who fit your organization.

Here are just some of the ways you can do it:

  •         Post on multiple job boards. There are many websites that can help you find good software developers and engineers. Take advantage of them. Write the most detailed job descriptions you can and post them on multiple channels to maximize your reach. If you have access to analytics, study them carefully; how many people are seeing this job ad and how many are actually responding?
  •         Make your company more prominent. You can also make an effort to make your startup (and your job opportunities) more visible and more prominent. Paid advertising is perhaps the fastest and most convenient route here, but it can also be expensive. Alternatively, you can use organic social media posts and engagement in groups to improve the visibility of your business.
  •         Network and recruit. Spend time networking with other people and consider hiring a recruiter or recruiting agency. The bigger your professional network is, the more reach your company is going to have – and the more warm job candidates you’ll be able to work with in pursuit of filling your positions.
  •         Use cold outreach. You may also want to take advantage of cold outreach – the process of reaching out to people who have no existing familiarity with your startup. As long as you’re working from a reliable set of data, this can work out in your favor.

Refine Your Hiring

Finally, you’ll want to refine your actual hiring process.

  •         Focus on talent over credentials and experience. It’s tempting to choose candidates based on the years they’ve spent working, the degree they have, or the specific credentials they’ve earned. While these qualities are important, they don’t always tell you the whole story – and there are plenty of qualified, talented candidates who lack these formal credentials. In most cases, it’s best to prioritize talent and capabilities over degrees, credentials, and experience. This will expand the pool of candidates you have to choose from and lower the cost of hiring at the same time.
  •         Find someone willing to grow. As a startup, you’re likely hoping to grow this business significantly. Accordingly, it’s in your best interest to find someone willing to grow with the business. It pays to find a candidate who’s going to learn new skills and adapt over time – as well as one loyal enough to stick with your business through the major challenges you’ll inevitably experience.
  •         Don’t neglect personality. Don’t forget about your candidates’ personalities. You need to make sure they’re a good culture fit in addition to having the technical skills and talent necessary to engineer your core products. If they don’t get along with the rest of your team, or if they don’t take direction well, they may not be worth hiring – no matter how much else they have to offer.

You may not find the perfect candidate overnight, and you might not be able to build a perfect team with your limited budget. But if you apply these strategies correctly, you should be able to recruit a team of capable, cohesive people who can help you execute your business plan from day one. 

 

Nate Nead

Nate Nead is the CEO & Managing Member of Nead, LLC, a consulting company that provides strategic advisory services across multiple disciplines including finance, marketing and software development. For over a decade Nate had provided strategic guidance on M&A, capital procurement, technology and marketing solutions for some of the most well-known online brands. He and his team advise Fortune 500 and SMB clients alike. The team is based in Seattle, Washington; El Paso, Texas and West Palm Beach, Florida.

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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