VC market recovery gains momentum, opening doors for future staffing growth
Alex Horkan, Head of Tech & High Growth, spoke to PitchBook about the current state of the venture capital market, the resourcing changes he has seen and the future of the industry.
Alex, alongside investors from Hoxton Ventures and Headline Capital, remains positive that hiring will increase with a fundraising recovery later in the year.
“People have been leaving the industry to go into operational roles, and sometimes that’s been their own portfolio companies. We’ve seen a slowdown in more core, associate-level hiring.”
Alex Horkan, Head of Tech & High Growth
With VC firms assessing team balance and quality, we expect Q4 hiring to increase
This article argued that the venture capital market was recovering, with valuations rebounding and total deal value reaching $55.6 billion, an eight-quarter high. Despite this, some VC firms reacted by reducing headcounts – in part due to cyclical factors, but also structural changes like new technologies. In general, headcount growth (especially at the associate level) slowed significantly, reflecting an adjustment from previous over-hiring.
Alex pointed out that some VC firms had been quietly reducing their teams, but were ensuring that talented individuals stayed within the industry. They often encouraged their employees to find new opportunities, sometimes within the firms' own portfolio companies.
Alex believed that new hiring efforts would start as fundraising goals were met in the fourth quarter of that year and the first quarter of 2025, potentially returning to 2019 levels the following year. He was mindful of the long-term impact that new technologies might have had on team structures but strongly agreed with Christian Leybold of Headline Capital. Leybold emphasised that venture capital was fundamentally a people business, where building and nurturing deep relationships were crucial for success.
Alex pointed out that some VC firms had been quietly reducing their teams, but were ensuring that talented individuals stayed within the industry. They often encouraged their employees to find new opportunities, sometimes within the firms' own portfolio companies.
Alex believed that new hiring efforts would start as fundraising goals were met in the fourth quarter of that year and the first quarter of 2025, potentially returning to 2019 levels the following year. He was mindful of the long-term impact that new technologies might have had on team structures but strongly agreed with Christian Leybold of Headline Capital. Leybold emphasised that venture capital was fundamentally a people business, where building and nurturing deep relationships were crucial for success.
Read the full PitchBook article here
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