2021 has been one of progress in many areas. The overwhelming Covid shaped shadow has lessened somewhat but changes have been seen in other areas as well. Changes that may have been hidden behind the prominent restriction loosening news, such as the astronomical boom in Venture Capital funding over the first six months of 2021.
Whilst many of us were peeking through cracks in the curtain and squinting at sunlight, tech start-ups across the UK have been flourishing in the warmth of sweet venture capital backing, the likes of which we’ve never seen before.
Data compiled by Dealroom, for the UK’s Digital Economy Council and Tech Nation, revealed that venture capital funding within the UK tech sector reached an extraordinary £13.5 Billion during the first six months of the year. More than France and Germany combined.
And it’s not only the UK. Crunchbase News reports that $288 Billion was invested in start-ups globally over the first two quarters of the year, almost as much as what was invested over the entirety of 2020.
Deals are being brokered, records being set left right and centre, but who actually are these VC-backed tech start-ups. What do they look like, and what will they do with this influx of money?
Well to be short, they could be anything. From user experience optimization experts to bio companies seeking to cure the rarest diseases through AI implementation, or even app developers seeking to assist in crop growth, they cover literally almost every base possible.
Often more likely to find their CEO appear at the bottom of a slide wearing jeans and a pair of Yeezys, they tend to represent the interests of the modern, I hasten to say millennial, world. Whether that be the ever-increasing need for sustainable environmental practices or increased efficiency of tech use, they do what the big firms do, but on a smaller scale and often with more of an eye towards CSR.
And as a recruitment-to-recruitment firm, we would be remiss not to cast an eye towards the firms recruiting in this VC backed tech start-up space. There are a number of firms operating within this market, from large, global firms to start-ups themselves. One thing they largely have in common, however, is they tend to mirror the companies they recruit for, in ideology and culture, but also in the sheer quantity of demand.
All are grateful recipients of the direct knock-on effect from the VC boom and never have these companies been busier. Sure, a tech start-up may put some of their backings into swanky new offices, R & D, or “corporate” retreats to Ibiza, but for certain a good chunk of that money is going towards new hires, and that’s where these firms thrive and have been this past year.
Recruitment firms focused on the VC market look to define themselves by standing out against the world of traditional recruitment. Their founders take an approach based around the mindset that anyone can transition into this sector of recruitment, and anyone is welcome to, regardless of which sectors they have worked in before. They have modernised how to succeed in recruitment and how these successes are recognised, with increased commission schemes and full transparency around them leading to employees feeling more valued, and prospective candidates feeling compelled to come on board.
Combine the upbeat market conditions with a culture that feels a mile away from the antiquated KPI led suit wearing recruitment model and it’s easy to see why it’s such an enticing subset of the recruitment community.
So, we’ve dealt with the VC boom, and consequently with the tech start-ups reaping the rewards, and then moved backwards to the companies who recruit for them.
And who recruits for them, well we do. But why do we?
To put it simply, we value this modern, progressive way of thinking as much as their employees and candidates do. It’s refreshing to work in conjunction with environments such as these. Firms that wholly value their employees and are pioneering a new wave of what a recruitment firm should look like. We enjoy being part of changing the mindset of traditionalists and showing them a new idea of recruitment. We stand by what these firms represent and want to play a role in being a part of making it happen.
If you are keen to have a conversation regarding how you can capitalise on your existing experience of recruiting for investor-backed technology companies, or pivot your career to start recruiting in this space, please do reach out to one of our Managing Partners – Daniel Close email@example.com or Dan Flynn firstname.lastname@example.org