Why is previous startup experience so sought after?

The start-up space within Construction Technology is experiencing a real boom, with more and more companies receiving large rounds of funding.

Research from Nymbl Ventures states that Q1 of 2025 saw a 46% surge in ConTech Startup funding, with over $1.1 billion invested in that quarter alone. With a large proportion of this funding going towards recruitment and filling out teams, we've mapped the market to find out what these companies value the most in a great candidate. 

That thing they value most; it's previous start-up experience. But why is that, and what does it mean for hiring?

Time to ramp is reduced significantly

Start-ups are constantly operating in a fast-paced, ever-evolving environment. This can be really exciting, but can also be a little overwhelming if you haven't ever been part of a business like it before. When a start-up is in a rapid stage of growth, they need new hires to hit the ground running almost instantly.

Previous start-up experience means a new hire won't be shell-shocked by the work environment and will understand the way things go; they will be better prepared for the challenge ahead than candidates with no prior experience.

Better suited than corporate backgrounds

Candidates that have strictly come from a corporate background are used to having a stricter structure and clear lines of accountability in their roles. That works great in that environment, but it doesn't always work well in a high-growth start-up. Working in a start-up means you will be expected to don multiple hats across a working week; it's all part of the start-up experience. Adaptability is a crucial skill to juggle multiple workloads independently, and having previous start-up experience almost guarantees that this skill has been fine-tuned.

Those that have worked in start-ups before will also have a greater appreciation and understanding of the finite resources that are available, getting the absolute most out of the limited tools at their disposal.

So, what does this mean for hiring?

With the high number of Contech start-ups putting their newly raised capital into additional headcount, the demand for talent with previous start-up experience is already at an all-time high. The truth of the matter is that this talent won't come cheap. Candidates will likely be involved in multiple hiring processes, so they will be in a strong position to negotiate their compensation package. Want to secure your top candidate? Make sure you have the ability to offer a terrific package.

I do think it's important to note that whilst previous start-up experience is more likely to guarantee a new hire that hits the ground running in the environment, it could prove foolish to completely discount candidates without it. If you have a recruitment process that can assess the soft skills of candidates, you might be able to find a hidden gem that has all the skills that lend themselves to a great start-up employee, such as adaptability and resourcefulness, then you could find some great talent without having to fend of competitors.

And there's always the option of hiring straight from the Construction industry. Read more about that here. 

Are you looking to fill out a team in the Contech space? 

Reach out to me on joe.coleman@fmctalent.com and let's work on that together.