How to Hire as a Seed Startup in 2025
Dover
June 16, 2025
•
4 mins
The seed stage looks different than it did a few years ago. In Q1 2025, late stage startup investment surged while early stage funding fell to $7.2 billion globally, a 14 percent year over year drop according to Crunchbase News.
What does this mean for you? Money is tighter, runway is more precious, and every hire has to count. You can't afford the same hiring mistakes startups could get away with during the 2020-2021 funding boom.
During the seed phase, you're refining your core features, validating product market fit (PMF), and acquiring customers. Your hiring strategy needs to align with this.
While there's no one-size-fits-all roadmap, we've seen clear patterns after working with hundreds of startups. Let's look at some typical early hires:
First Engineering Hire: Your Founding Engineer
Your first hire is likely your founding engineer. This person should be able to:
Design and develop a technical foundation that supports your company's mission
Make key technology decisions
Eventually lead and mentor junior engineers
Work directly with customers and feedback loops
Timeline: Typically your first hire after closing the seed round.
The Junior Engineer: Building Your Technical Foundation
As your product grows, bringing on a junior or mid level engineer can be a natural next step to expand your engineering team.
Timeline: Usually 3-6 months after your founding engineer.
What to look for:
Eagerness to learn and adapt
Strong technical basics
Cultural fit with your founding engineer
Ability to work across the stack
Sales vs. Marketing: Which Comes First?
This depends on your business model:
B2B Startups: Hire a salesperson first to convert warm leads into customers as you learn who your best customers are.
B2C Startups: Start with marketing to learn which customer channels work best and drive business growth.
Timeline: Typically 6-12 months in, after your core product is built and seeing traction.
Before hiring, you need systems in place. The good news? You can get started with an extensive applicant tracking system, like Dover's free ATS, without spending a dime.
“Dover’s ATS simplifies the hiring process and provides an excellent level of support, ensuring a seamless migration during implementation!” - Julie Yang (East Side Games)
Why You Need an ATS
You might think, "I'm only hiring 4-6 people, why do I need fancy software?" Here's why:
Organization: Even with few candidates, things get messy fast. An ATS keeps everything clean.
Team collaboration: Get a centralized hiring pipeline view and collaborate easily.
Professional candidate experience: Nothing says "not ready to hire" like losing resumes in your inbox.
Scalability: Start with an easy to use ATS built for startups that can grow with you.
Essential ATS Features for Seed Startups
Feature | Why It Matters | Dover's Solution |
|---|---|---|
AI-powered candidate scoring | Saves time reviewing resumes | ✅ Automatic ranking |
One click job posting | Reach more candidates easily | ✅ Post to 70+ boards |
Team collaboration | Get input from your whole team | ✅ Feedback and scorecards |
Career page builder | Professional candidate experience | ✅ No code careers page |
Mobile friendly | Review candidates on the go | ✅ Fully responsive |
Setting Up Your Hiring Process
Here's a simple but effective process that works for most seed startups:
Application: Candidates apply through your careers page
AI screening: Your ATS automatically scores and ranks candidates
Phone screen: 15-30 minute conversation to assess basic fit
Skills assessment: Role specific evaluation
Team interview: Cultural fit and team dynamics
Reference check: Verify past performance
Offer: Negotiate terms and close
The key is keeping it simple but thorough. Document everything to create repeatable playbooks as you scale.
Working with Fractional Recruiters: Your Strategic Hiring Partner
Once your ATS is set up, consider getting help from a fractional recruiter, an experienced pro who provides part time or project based hiring support.
When to Bring in a Fractional Recruiter
You should consider working with a fractional recruiter when:
You're hiring for roles outside your expertise
You need to fill multiple positions quickly
Your hiring volume is ramping up after funding
You want to build better practices
Your team is spending too much time on recruiting
For rapid hiring spurts, fractional recruiting is ideal, letting your team focus on product growth.
What to Expect from a Fractional Recruiter
A good fractional recruiter should understand your business, product, market, and culture. They should help refine job descriptions, interviews, and evaluation criteria while sourcing candidates rather than just posting jobs. They conduct initial interviews to save you time and provide market insights on compensation and trends. A quality recruiter will also train your team on interviewing and hiring best practices.
Fractional Recruiter Pricing
Fractional recruiters typically price their services in three ways:
Hourly rates: $75-200+ per hour based on experience
Monthly retainers: $3,000-8,000 per month for part time support
Project based: Fixed fee for specific hiring projects
Find someone whose pricing aligns with your needs. We wrote a full blog on recruiter costs that walks through it all too.
Common Seed Stage Hiring Mistakes (And How to Avoid Them)
We've seen hundreds of startups make the same hiring mistakes. Here are some big ones to avoid:
Mistake 1: Hiring Too Fast or Too Slow
The problem: Making rushed hiring decisions with the first qualified candidate or taking too long searching for a perfect fit.
The solution: Create a clear timeline for hiring. Plan to extend offers within 2-3 weeks from when you begin looking. Working with a part time recruiter helps maintain both speed and quality in your search.
Mistake 2: Focusing Only on Technical Skills
The problem: Organizing your process around intelligence tests and brainteasers.
The solution: Look beyond just skills and experience. Focus on finding people who share your values, show enthusiasm, and connect with your company's purpose.
Mistake 3: Not Checking References
The problem: Skipping reference checks in a hurry, only to uncover issues later.
The solution: Always check references, especially for senior roles. Let your fractional recruiter handle this.
Mistake 4: Unclear Equity and Compensation
The problem: Not providing clear details about equity and competitive pay packages.
The solution: Use tools like Carta or AngelList, or work with an experienced fractional recruiter.
Mistake 5: Hiring for Today Instead of Tomorrow
The problem: Hiring for an immediate need without considering growth potential.
The solution: Think 12-18 months ahead. Hire people who can grow into those future roles.
Putting It All Together: Your 2025 Hiring Roadmap
Here's your step-by-step roadmap for seed stage hiring in 2025:
Phase | Timeline | Key Actions |
|---|---|---|
Phase 1: Foundation | Month 1–2 |
|
Phase 2: First Hires | Month 3–6 |
|
Phase 3: Scale | Month 6–12 |
|
Phase 4: Optimize | Month 12+ |
|
How Dover Supports You
Foundation Phase:
Free ATS with AI-powered candidate scoring
One click job posting to 70+ boards
Professional careers page builder
First Hires Phase:
Fractional recruiters for specialized roles
Sourcing tools
Interview scheduling and feedback
Scale Phase:
Employee referral system
Agency management portal
Analytics and reporting
Slack integration
Optimize Phase:
Data driven hiring insights
Faster hiring process
Source tracking and review
Mass recruitment planning
The goal isn't perfection from day one, but building a hiring plan that evolves as you grow. Seed startups face unique hiring challenges, but Dover helps simplify the process with smart recruiting tools and expert guidance.
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