How do you avoid over-hiring in an early-stage company?

How to Avoid Over‑Hiring in Startups

In this episode of VHTB, Matt Gjertsen of Better Every Day Studios, Justus Kilian of Space Capital, and Seyka Mejeur of AdAstra talk through what causes startups to grow their teams too quickly and how to keep hiring in check. They explore how to align hires with technical and financial milestones, how to set up hiring authority and decision processes, and how external pressures (funding cycles, trends) can push over‑growth.

The conversation includes what to watch for when scaling, how founders can decide which roles really matter soon vs later, and why operational structure matters even when things feel urgent. There’s also discussion about unit economics, how AI might affect company size dynamics, and what being disciplined about hiring means in practice.

Episode Highlights

00:00 What over‑hiring looks like and why it can be a problem

00:40 How startups often respond to “we need people now” vs what they actually need

03:45 The risk of letting urgency weaken hiring criteria

05:00 How decision‑making structures (who approves hires, who has veto) matter at scale

06:09 Mapping the hiring process: visibility & accountability across teams

10:22 How financial discipline and understanding unit economics tie back into a healthy hiring pace

11:11 Common Mistake: Misunderstanding the Customer

13:00 The Financial Blind Spot

14:30 Importance of Financial Discipline in Hiring

18:30 Planning for Hiring Scale Before You Scale

21:00 Should Deep Tech Aim for Smaller Teams?

22:00 AI's Role in Reducing Hiring Needs

23:45 The Diamond-Shaped Team Structure

Episode Takeaways

• Start by defining what each new hire is meant to accomplish. Technical and measurable goals help you stay aligned.
• Build operational visibility: know who’s making hiring decisions and how many people are involved.
• Be aware of external influences (investment rounds, market hype) and consider whether you are reacting or planning.
• Financial grounding matters. Understanding unit economics gives a clearer sense of when hiring makes sense.
• Roles should be scoped clearly, even when someone exceptional shows up. That clarity protects against drift.
• Having a hiring process and approving structure helps prevent waste, confusion, and unexpected bottlenecks.
• Scaling too quickly can hurt long‑term stability; slower, deliberate growth tends to preserve alignment and reduce risk.