As you scale your business, your hiring needs change. For example, on average, startups don't hire their first HR position until the 22nd employee. What position do you envision being your next hire? Is there a position that you wish you had, but don't feel like it's the right time to hire?
To help you make those decisions, we've aggregated some impressive data. Even though many companies are making do with less, payroll is still the primary driver of cash burn for most companies, causing many to rethink their headcount projections in light of new fundraising dynamics.
Company payroll typically crosses the $1 million threshold around the time the company reaches a $10 million valuation. A company typically breaks through the $10 million payroll threshold when it has 60-80 employees.
Payroll, headcount, and company valuation don't scale at the same pace. Because payroll is a function of headcount, the two metrics scale alongside each other. Company valuation, however, scales faster.
Here are the headcount and payroll averages by company valuation:
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Brent Devey
Community Manager
Carta
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