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Startups trim team size to woo investors
Startups trim team size to woo investors

Time of India

time04-08-2025

  • Business
  • Time of India

Startups trim team size to woo investors

. Mumbai: The less, the merrier - that's the mantra in the startup and venture capital space, where there's an increasing shift towards building smaller teams. More investors are now also considering the size of a startup's team while weighing potential funding - it is not a big determining factor yet, but at least it is a metric being considered, with the 'revenue per employee' metric making its way into investor discussions. AI has a part to play in this shift - the tech is not leading to wide-scale job reductions, but it certainly is eliminating the need to hire more, and nudging companies to redeploy human capital towards more complex tasks. "Investors have become intensely focused on startups that demonstrate capital efficiency and a high revenue per employee ratio. The excesses of the last funding boom, marked by aggressive headcount growth has given way to an era where impact is measured by output, not team size," Manu Iyer, general partner at Bluehill VC, which funds early-stage startups, told TOI, adding that, on average, today, series A (early stage) startups globally and in India come to market with fewer full-time employees. Even as startups as big as Paytm and Ola are betting on AI to cut inefficiencies at work, the trend of building smaller teams is more rampant among deep tech and AI-native startups. "...one emerging benchmark is $1 million ARR (annual recurring revenue) per employee. This wasn't even a talking point a couple of years ago, but becoming a sign of capital efficiency and strong product-market fit. Investors are increasingly asking not just about growth, but about productivity per headcount," said Neelabh Shukla, chief business officer at talent solutions provider Careernet. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Japanese AI invention allows you to speak 68 languages instantly. The idea? Genius. Enence 2.0 Undo Startups across segments have been using AI to cut costs. Lower fixed costs mean startups can weather economic shifts and stretch investments (investor funds) much further, said Iyer. Viswanath P S, MD & CEO at Randstad India, said that the narrative in startups has shifted from "how big is the team" to "how effective and scalable is this team's execution model". "Investors are increasingly prioritising startups with smaller, more focused teams when making funding decisions, particularly in venture capital and angel investment circles," Joshi said. Investors, however, are closely watching how startups are using AI and assessing the real and perceived benefits that AI integration can bring," said Ankur Mittal, co-founder at Inflection Point Ventures. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025

Bluehill VC to announce final close of maiden fund by end of 2025
Bluehill VC to announce final close of maiden fund by end of 2025

Business Standard

time27-07-2025

  • Business
  • Business Standard

Bluehill VC to announce final close of maiden fund by end of 2025

Bluehill VC is targeting the final close of its ₹350 crore maiden fund by the end of 2025. The firm has already raised ₹225 crore and has made investments in deep-tech startups New Delhi Listen to This Article Deep-tech investor Bluehill VC is targeting the final close of its first fund of ₹350 crore by the end of this calendar year, said its co-founder and general partner Manu Iyer. The Chennai-headquartered investor, which received Securities and Exchange Board of India approval in May 2024, announced its first close of ₹80 crore in August that year, and has so far raised ₹225 crore. It has completed three investments in line with its plans to invest in four to five companies each year. The company aims to invest in 16-20 companies with an average ticket size of $1-$1.5 million over

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