What It Takes to Hire 10 Employees in San Francisco
kapwing.com
kapwing.com
But also disclose that you got scared off of the $15k/fee and haven't tried that route.
In my experience the right recruiter can combine the utility of the "First-degree friends" and "Referrals" sections you list out.
I used to be anti-recruiter until we made it a point to "recruit a recruiter" and qualify them as hard as we would if we were looking for an internal role.
Interviewing recruiters through a process landed us a recruiter that is well known and respected in his niche, has built trust with dozens of candidates, and delivered strong hires.
We've gotten 6 amazing people in ~6 months and from an investment return basis I can't think of better money that we've spent.
The product side improvements that the new team members are delivering + reducing the brain damage you go through with bootstrapping hiring are high return investment categories in my view.
And the punchline is I think you $15k/hire is off - we've averaged $45k per hire (30% of first year) for engineering & sales talent in the $120 - 200k/yr range.
PS - As others have commented the "We spent less than $1,000 on hiring" should probably be amended, it weakens the rest of what is a very good article on boostrapping hiring!
Most of them are so-so, but the great ones are great and can find amazing candidates in a matter of days.
You are basically paying to hire someone whose only job is to keep in touch with great people.
The so-so recruiters go through LinkedIn, the best recruiter I ever worked with, when I told her the type of person I was looking for, had someone immediately in mind and got back to me the next day with a phone number.
Well worth the fee if you can get the right person!
That means when your recruiter will leave - he\she will take your employees along
Why the heck would I, as a recruiter, be so willing to shit in my own nest?
Treat your clients - former and present with respect and integrity and you'll continue to get work into the future.
Value money over good relationships and you'll soon be out of work.
The thing that bugs me is that this is self evident, yet people keep assuming recruiters would behave this badly.
If you are my client, then I will only find a job for your employees if the employee in question has already left the company, or if the client has explicitly said to me "can you find a job for this employee who has left us?"
Rules - there's rules for how to behave with integrity.
That was his point, as soon as your client is no longer your client you poach their engineers on behalf of your new clients. It might not work exactly like that with you, but I bet a lot of recruiters have no moral qualms about poaching from an ex-client.
In sectors with no such pressure, employees have to pee in bottles just to shave a little bit of productivity.
They leave because they want to leave. Because someplace else offered them a job that they think will be better, be it pay, work environment, commute, work/life balance, or some other factor(s).
Recruiters and head hunters just helped the ex-employee find out about a job that will, potentially, make them happier.
Yep, a little bit of money goes a long way in enabling an early retirement
Worked out well, hired and worked together for a couple years until the project ended.
And all the other companies they work for.
Thing is, a lot of companies open the doors to a number of recruiters and get swamped.
But how do you find a good one?
Note that finding a good recruiter is hard, especially as a very early-stage startup. We spent a long time digging through mediocre resumes until we happened upon some good recruiters. It seems mostly trial and error so I'd recommend re-rolling a few times before making a judgement on recruiters as a general strategy. The benefit of the commission model is that you pay nothing if you make no hires, so that makes it lower risk to try a few interviews from a new recruiter.
Maybe one day I’ll meet a recruiter who has actual value
and that’s how you get bully psychopath CEOs sexually harassing people, infusing their religious / racist biases on the hiring process, etc.
Would much rather have HR + bureaucratic tedium than to be beholden to unbridled CEO whims.
But with principled leadership and monitoring, guidance, and procedures from HR, a great deal of this (and the legal, risk, and financial pain resulting) can be avoided, or at least, caught early.
It’s incredible to think that you’re taking the existence of bad behavior that happens despite these checks & balances as evidence that the checks & balances do nothing.
In a private company, the CEO can simply fire anyone in HR who stands up to them, no questions asked. In toxic situations HR often actively covers for bad behavior because the perpetrator signs their pay checks.
Not to say HR is useless and many times they can be an effective check on behavior. But as we've seen in some of these high profile cases of misconduct, HR has enabled abusers by taking their side against victims.
That's less true within the executive branch than between it and other branches; the main one relating to DoJ is the Senate confirmation process and the hope that the Senate won't confirm stooges of a corrupt President to leadership roles in the DoJ.
That isn't particularly reliable, however, making DoJ not a consistently strong constraint.
Same attitude for any type of employee towards any external consultant. They think: that's my job, I can do it cheaper, otherwise I'll just leave and hire myself back as a consultant and double my salary - but never have the skills or the guts to actually do it.
Does anyone find LinkedIn useful? The importance some people put on having an updated LinkedIn profile with updated contact lists seems outrageously disproportional to the actual value the site provides. It seems odd, too. Social media site around making business contact, keeping your cv online, yadda yadda... but the promise of the platform never seems to have materialized.
Of course, that means from a recruiter's perspective, when you are cold-messaging you need to be able to differentiate from the other cold-messages people are receiving, get their attention, seem like some place they would want to work, and be attractive enough that people are willing to quit their current job for you. That's hard if you're not a recognizable name and, with all due respect, not working on something really sexy. Otherwise you are just noise.
Anecdota, but still data: I know close to a dozen people "1st degree network contacts" (i.e., former co-workers) who found new jobs through LinkedIn...without needing to go through a recruiter. I used a recruiter to find my current position...but I found the recruiter through LinkedIn.
(To clarify: this weren't just "last two jobs in the past 4 months while I was job hopping aggressively", but rather, 1 job that allowed me to from a low-income country to a high-income country, and another where I've significantly progressed in the past 4 years and have no intention of leaving it anytime soon as I expect the progress to continue.)
Avoid at all costs.
I’ve never experienced a bad recruiter or the level of spam I hear about from software engineers. About 3-5 approach me per year, and they tend to be very legitimate and well connected/informed.
Edit: fiends to friends.
True that founders must spend time recruiting, but this person has essentially turned the job of company founder into the job of recruiter. Founders should have better things to do than make the incredible time commitment this person describes.
OK recruiters cost money, but isn't the founder's time worth something?
>> I’ve had coffees or breakfasts with probably hundreds of candidates.
This is not how to do recruiting, it's wasteful of the recruiter and the job seekers time.
The first interview should be a phone interview and it should be sufficiently detailed that any in person meeting coming out of it appears to meet many of the requirements.
If you are doing hundreds of coffee meetings then you're wasting vast amount of time.
It may sound trivial but the denim thing is signalling "young".
Also, a much better predictor than school, of how well someone will do at a job, is how they get along with their team. If they have a great degree from an amazing school, but they don't get along with their teammates, they will perform very poorly.
Re passion: you need a lot more of that to be "constantly learning and solving problems" for 4 years, rather than for 3 months.
What do you think people do in college? Party non-stop?
Yes, that's exactly what they do.
Most of the self-taught or folks with blue collar or military background have been the best. Hungry and resilient. Strange crowd at times, but great people.
The best people can learn on their own everything college teaches.
College is designed to help ensure there aren't any skill gaps. It isn't perfect, but I'd expect someone from a good university to be able to:
1. Put together a professional looking presentation.
2. Have good to above average written communication skills
3. Sit in a meeting with engineers from a different discipline and have at least some vague idea what is going on, and have less of a ramp up before they can start contributing.
4. Have an understanding of statistics and calculus.
5. Be at least familiar with all of the main hard sciences (chemistry, physics biology)
6. Have a greater than average understanding of, at minimum, the society that their college was based in.
When it comes to technical abilities, 4 years of learning is going to better prepare someone than 6 months to 1 year of learning. Multiple programming paradigms help a lot as well, someone who knows just JavaScript or C# is going to have less mental tools at their disposal than someone who has programmed in purely functional programming languages, used pattern matching, and who understands what code actually compiles down to.
I've hired from boot camps, 4 year programs focused on games, and CS programs.
The best boot camp graduates are of course amazing, but just coming out of school they are lacking a lot of skills, and there is no guarantee that any random boot camp graduate will be able to pick up those skills (again, of course the best ones can). CS programs have no problem failing students out if they hit the C++ courses and can't hang in there.
Graduates from schools like DigiPen can hang in there, but they also have huge gaps in their knowledge that have to be filled. (On the flip side, they also have skills that people with CS degrees don't have!)
A student from a good CS program should be well rounded. Ideally they should be able to join a team doing low level systems programming and ramp up on embedded C just as easily as joining a team writing some sort of insane load balancing / network caching system.
Even more so (and maybe more shockingly) you don't need to be a capable programmer to get a CS degree. I have worked with people who have master's degrees from respectable universities who have not used Git or a command line in their life.
And yes, both are teachable -- but then, everything is. It is hard to quantify exactly how much inexperience in any given discipline hurts the outcome to what degree, but I feel there is a strong bias towards algorithms over practical skills, including having worked on and completed real life projects, that does not correlate well with their importance in common real world situations.
This is kind of a strange bar to set. There are entire companies that don't use git. In fact, most projects hosted on Google Code (now defunct) were using Mercurial.
If you've not used Git or GitHub or any of the cloud providers for Git, it's a signal. To me it signals that someone uses open-source software or has some passing familiarity with it.
As a person that conducts interviews, the things that people leave public on a GitHub profile have been a pretty invaluable signal of attention to detail or code quality. If I see someone with a dotfiles repository, it likely means that they care about their craft a bit, and it factors into a part of the whole evaluation pie.
I think you're too young to know that code management systems existed before git.
Turns out modulo is not a well known operation.
In my Computer Science libraries and applications are written by people and people make political, marketing, historical and technical choices that directly influence the design of the said software.
So whatever you're saying about "precise structures of programming" is clearly heavily dilluted by "the messy, sometime illogical world of humans".
It seems like in your world Spectre would never happen. But it did happen in mine.
The original question is what is more important when hiring: a team player or technical skills. Everyone has both but at a different share.
At the same time, I do a lot of SDE1 level hiring and have found that while there are good bootcamp grads, it is just so much more work to sort through / screen the bootcamp grads. Some of them have been some of the worst interviews I've ever conducted (no idea what a class is), my guess is due to the variation in quality of bootcamp.
In the end I'd (selfishly) rather have my fresh grad pipeline coming through college rather than bootcamp just because I'll be able to get someone more quickly and with less effort. Not that there aren't good people out of both pipelines.
> I work with a few software engineers who do not have CS degrees - they have extensive industry experience and are fantastic to work with.
Different things entirely. She preferred A over B, you are talking about C.
bootcamp grads vs fresh CS grads vs industry veterans.
I'm fully "self educated" like in not even bootcamps, just jumped straight into taking client work from zero programming experience (well, I did hack on some research/side projects while in med school before abandoning that), and having been ob both sides of the hiring process I'd say that hiring CS grads is 100% worth it you can hire the top 10%, probably not worth it after that. People who learn on their own tend to be passionate and motivated, people getting into CS at a good uni have a variety of motivations - they might be smart and capable, and if you're a big corporation you'll always find room for smart and capable people that can play by the rules... but not necessarily what you want. OK, maybe for US ivy-league or whatever that 10% might go to 25%-40%, but a fresh company might still not afford that...
And really, be honest with yourself, having a CS/EE university degree, would you really hire anyone but the top 10% of your classmates?! You know how it is, the 10% are there to study, the rest are there to study 10% of the time (and paaaaarty the rest ;)...) And... would you have any chance to afford to hire those top 10%?
Here we are choosing between a random/average bootcamp attendee, and a random/average CS graduate from a good school.
1. Throw away any resumes from old people
How many highly experienced individuals are going to join a seed stage startup as a regular employee?
It's founder or no deal with early startups for most people I know above 40. You join as regular employee - maybe get 1-3% at the high end. Founder? Order of magnitude more.
LOL, name and shame, I'm looking to poach some people from a place that's so scared of this.
These are the investors from their Crunchbase page [0]:
- Kleiner Perkins
- Sinai Ventures
- Bryan Rosenblatt
- Village Global
- ZhenFund
- Shasta Ventures
- Ron Drabkin
- Riverside Ventures
One day it would be nice to really, deeply measure how investors contribute to their portfolio companies.
[0]: https://www.crunchbase.com/organization/kapwing#section-inve...
We had a little luck tapping YC and YC alums early on though to some extent, and posting job reqs here on HN definitely helped.
I understand the benefits of having a fully co-located team, however in this article they did not address fulltime remote employees.
I currently work as a fulltime remote employee for a startup with a similar team size, and we are able to iterate rapidly on product.
I've worked on remote engineering teams for companies that have their non-engineering workforce go to an office for the last 6 years.
There's tradeoffs. Remote is much better for some things and in the same physical office everyday is much better for certain things.
There's a ton of blog posts that have been on HN over the years that go into the details of the pro and cons.
But anyone telling you it better one way or another in general is full of it. All depends on the details.
It's not like they are hiring people straight out of Stanford. They're getting people from bootcamps!
Joking obviously! I now a great dev under 30s! Not me...
i would 100% work at a place with younger people AND at a place with older people. it all depends on how the company's culture handled all this.
(and why you are interviewing the company as much as the company is interviewing you).
* the pay is great
* work/life balance is sane
* the CEO/your direct manager has a family/children
then of course.
Why would that matter?
Sounds like a winning game plan.
Granted my use case is doing minor modifications to graphics on occasion. But it's not like everyone that needs photo editing wants to have to install an app on their machine.
And there's nothing about photo editing that a web browser can't do fairly effectively these days. Video editing is definitely tricky but something like Windows Movie Maker I can see working well in a browser. But not anything for professionals.
Full psd Photoshop compatibility and everything.
Also, experienced people usually don't jump for your entry level dev position. They are changing jobs to advance their career. In a start-up, you might not even have the positions they are looking for.
The ageism stems from having a harder time suckering older applicants. It’s disingenuous to use language making it sounds like the older candidates’ requirements are “too high.” It’s not about that. It’s about who can this self-absorbed start-up sucker.
One problem is being old school enough that it's darned difficult to work for free.
It is a huge myth that the hiring experience with recruiters is poor. It is a huge myth that the quality is low.
Find the right recruiter. Get good candidates. The onus is on you to do your research.
Not a recruiter. Just someone who has worked with some amazing recruiters in the past. I've interviewed thousands of candidates, hired many of them, passed on quite a few. Hiring is always the same. Don't make it harder.
Kapwing has 1 Funding Round totaling $1.7M
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https://www.similarweb.com/website/kapwing.com
In the last 6 months, kapwing.com traffic grew from 1.75 M to 3.3 M Total Visits per month.
3.3 M Visits per month is, usually, a good result on $1.75M investment.
> When it was difficult to hire, we considered outsourcing engineering work to an external dev shop.
Outsourcing and remote hires are two completely different things.
Indeed, hiring a fulltime offsite employee is very different from outsourcing to a 3rd party.
Hiring full-time remote individuals is great if your company puts in the work to be remote-friendly.
Successful outsourcing work to a dev shop (usually remote to some degree) depends on your ability to communicate your product's technical needs precisely.
bootstrapping can happen anywhere but not in SF these days in my opinion due to cost associated, It used to be a startup in your garage, nowadays it's called lean-startup with remote peers(sometimes overseas to save costs further)
One model that I would like to see more of is a type of co-op, maybe even part time. This allows you to defer payment in lieu of equity, at the obvious cost of not having people's attention as fulltime employees, and slower iteration time. The benefit is that you can actually get FAANG caliber engineers to work with you since you are paying entirely in equity
For it to be viable, you would need to focus on getting an MVP up fast and reaching ramen-profitability. Then once there's enough money for everyone to pay their bills, you could start transitioning people to fulltime. Again since you are sharing equity generously, as long as you find like-minded peers, ramen profitability for each employee/co-founder is all you need
Is this common?
It indicates to me that the person writing this article doesn't consider their time to be valuable, and raises all sorts of red flags about how they would value the time and energy of their employees.
Throw in the combination of the shared jean jackets and incredibly forced (almost desperate) smiles in the Hero/Footer image and the cult vibe is overwhelming screaming RUN AWAY.
Is this a coded cry for help? Should we rescue these developers?
https://www.kapwing.com/blog/postering-san-francisco/
And it ends with this quote : "By the end of our 8-hour workday, we had: - Put up 352 posters - Spent $96.16 ($31.08 for tape + $65.08 for printing) - Taken 25,497 steps - Walked 11.2 miles - Used over 400 ft of tape"
Nowhere in there does it say anything about the cost of paying the people to do that work.
They're very clearly and plainly stating that they do not put any value on the time of their employees.
Must’ve gotten a discount on the coffee.
You are the noise.
But a good engineer already has a job. What makes your job's value proposition attractive enough that this gainfully employed engineer should engage with you?
One easy way to set yourself apart is to tell people what salary range you're working with up front. A good senior engineer is probably already getting paid well, so if your salary range is attractive, they're much more likely to respond. If they're not getting paid what they're worth, you may get their attention immediately. If your salary range is too low, your response rates will reflect that.
Beyond salary, find a way to communicate the most attractive and unique features of the job up front. Don't start with, "we have PTO, health insurance, 401k, etc." because almost everyone offers that. What sets your company apart? What about the work is compelling and interesting?
Solution: Don't hire in San Francisco.
And not limiting your hiring pool to hip millennials could also help.
This is the most unintentionally depressing post I have read in a long, long time. I really don't think I can keep working in tech much longer.
And “I’ve had coffees or breakfasts with probably hundreds of candidates”
The real cost is over $1,000 unless the value of your time is $0.
Also, as someone else commented. So out of hundreds you interviewed, it doesn’t appear that anyone over 30 was hired. What did the age breakdown look like? Ageism does exist in tech.
I mean, a lot of times this is coded in the job descriptions. "rockstar ninja" "10x engineer" or similar words generally mean they are unable to pay experienced people wages and are looking for someone new to do the work of an experienced person.
A lot of people think this is bad, as it almost always implies overwork, but I have mixed feelings. My first programming job? I was 17, no education, and I was hired as a "Staff Programmer" but only paid slightly under $40K (this was in '97, so while that was great money for a 17 year old, that was... not market rate for an experienced engineer, much less a "staff" level title.)
In a lot of ways it was a great experience for me. My shitty C code ran on production and in turns vastly improved and degraded user experiences for literally millions of people. For a company that wants to 'roll the dice' - I was probably a good deal, 'cause I did some pretty amazing things. (in both directions, really... but it did work out well sometimes?)
(I can't find the quote right now... by Vixie; something about how many CERT notices he was responsible for, and how it showed that in his youth, he could code, but he didn't learn to manage risk until later.)
But, I mean, my experience of the valley (and SF is not silicon valley, but it is... adjacent.) is that startups hiring young people can partly be explained by the phenomena that startups aren't willing to pay market rate for someone with experience; even at my age, I see pressure to move to management.
If something bad happened and I had to work at a startup again, one of the big tells I'd look for would be the number of older engineers that are working as direct hires (not contractors); This is usually a good indicator that they are willing to pay reasonably.
Could be plenty of noobish 40 year olds out there.
cough
When I was a young 20 something starting out in the bay (20 years ago) I ran across quite a few older engineers (some of them in their 50's).
All the best things I know came from them.
I remember at one point one of them handed me a spiral bound book of the papers from an early 90s (or late 80s) unix conference. Papers, actual papers, from a conference, BOUND (pre internet right there) --- there were a lot of interesting insights that came from that book that still impact me to this very day.
That's literally the next sentence of the article after “We spent less than $1,000 on hiring." The article explicitly acknowledges this issue.
>We’ve spent less than $1000 on hiring, but I’ve had coffees or breakfasts with probably hundreds of candidates. Measured by hours, recruiting is one of our largest investments
Reads as: “we committed a small amount of resource X, BUT we spent a lot of resource Y.”
They didn’t miss the fact that they were burning resources. They stated it explicitly.
Not affiliated with the company in the article, but this isn't necessarily a symptom of ageism.
Early-stage startups generally pay toward the lower end of the SF engineer pay scale (<$150k). At that salary, it can be hard to find local experienced candidates. For $150k/year it's impossible to buy a house and put down roots, so people at a stage in life that value that (which is a significant percentage of the over-30 demographic) will often move out of the Bay Area. You'll make a bit less money in Denver, Austin, Boise or Salt Lake City, but you'll be able to buy a house with a yard and raise a family if that's your thing.
Of course, there are still experienced engineers around, but they're disproportionately making $300k+, which can still buy you a decent quality of life in the Bay Area.
If the output of a hiring process results in all men being hired and no women, people would be correct to raise a concern. So if the output of a hiring process results in all hires being young and none old, should there not be similar concerns?
No, people do not generally agree that a process with a clear cause resulting in an explainable distribution that doesn't reflect society at large is discriminatory. A very specific political view suggests that.
You don't see a lot of female construction workers. Sometimes only a specific group is willing to do, or capable of doing, a job for a perfectly acceptable reason.
Just being humorous here. Let's say he spent $999 and spoke to 200 candidates. The previous statement is not against the claim of the author.
Does that mean, he spent ~$4.99 for coffee or breakfast per candidate? Is it possible to have coffee or breakfast for 2 people in SFO for that money? Or, he could have either bought coffee for only the candidate and stared at him/her while he/she drank the said coffee or asked the candidate to pay for his/her own coffee. Yikes! :-P
I wouldn't be surprised if the majority of their applications were younger than 30. Their landing page is marketed toward meme generation. Most older folks won't make it past the landing page before seeking opportunity elsewhere.
Not that I don't agree that age discrimination exists in tech, but this could just be an artifact of startups in the Bay Area.
North of 30 is when people tend to settle down and start a family. That's enormously expensive in San Francisco. My guess is that most over-30s in tech either A) decamp to a lower cost of living metro, B) have very high-paying FANG jobs that startups can't compete with, or C) are independently wealthy from prior ventures.
Either way they're not showing up to a relatively low-paying, very high-risk, low-security startup job based on the outside chance of their stock options hitting it big. Lottery tickets don't pay the mortgage or pre-school tuition.
I think the underlying issue isn't so much age chauvinism as geographic chauvinism. Why do blank-slate companies continuously insist on basing themselves in the Bay Area? There's no shortage of talented engineers in Columbus, Philadelphia, Huntsville, Dubuque or Boise. Certainly enough for a dozen-employee seed-round.
Isn't it a funding issue? It's my understanding that it's easier to get funding here than anywhere else.
Yes, they could have moved out of the area, but that has its own costs, not just financial.
"We’ve spent less than $1000 on hiring, but I’ve had coffees or breakfasts with probably hundreds of candidates. Measured by hours, recruiting is one of our largest investments"
You quoted that extremely disingenuously.
But as implied, time and opportunity cost is what really matters, the dollars are minimal in comparison.
When founding our company, actual costs were low. Opportunity cost was large (not earning our existing salaries). Now the business is good and salaries vastly outweigh all other expenses (and we are in a low tech town, unlike SF).
The author is female.
This article was not intended to say our hiring process is perfect. It definitely is not. Just wanted to offer our experience for other first-time founders.
ew
can a startup like that pay bay area salaries?