In my role as Head of Portfolio Talent at Mythventure Capital, I’ve been fortunate to work alongside many pioneering founders within our network of over 200 blockchain ventures. Given how quickly this industry transforms, assembling a compact yet capable team is vital for gaining an edge. Recently, I’ve engaged in deep discussions with top founders, gaining valuable perspectives on their hiring approaches, how they shape company culture, and the hurdles they’ve encountered when establishing their initial teams.
I launched a “Groundwork to Growth” interview series featuring leaders from standout organizations like Arbitrum, StarkWare, 0x, M^0, Obol, and Omni Network. The focus was on how these founders expanded their core teams from just themselves to their first ten hires. I’m excited to now share the main takeaways.
Hiring Patterns That Emerge
Relying on Networks
A consistent message from founders was that network-driven recruitment remains the most effective strategy in the early stages. Utilizing both personal contacts and professional connections is crucial. Austin King, CEO of Omni Network, noted, “Without tapping into your personal network, securing those initial hires can be nearly impossible.” Strong relationships act as the foundation for finding quality talent. Furthermore, team members often bring in their own connections: Amir Bandeali, Co-CEO and Founder of 0x, said, “Almost all of our first ten hires came through referrals from our earliest employees.”
While your network is invaluable, there are ways to maximize the connections within your team, which we often guide our portfolio companies to implement.
Engineering as the Core Priority
Almost unanimously, founders stressed that hiring engineers first is essential. Engineering talent forms the backbone of blockchain startups, as they develop the fundamental products and systems. More than 81% of the first hires across the companies interviewed were engineers, highlighting this technical emphasis.
Utilizing Contractors to Build Momentum
Many founders prefer to lean on contractors or external agencies before raising larger funding rounds like Series A. This strategy helps in launching products more quickly without the immediate overhead of full-time staff.
Nathan Allman, CEO of Ondo, remarked, “It’s beneficial to have a more mature product and fundraising status before onboarding full-time employees, as attracting top talent without a product is challenging.” Winston Zhang, Co-Founder of Cega, shared a similar experience where part-time contractors supplemented their technical capabilities during the early days.
This method not only controls expenses but also preserves equity, making it easier to recruit full-time talent once there’s a tangible product.
Prioritizing Company Culture
While skills matter, culture often makes the difference. Amir Bandeali advised hiring people who are proactive, independent, and flexible, as roles in startups evolve rapidly. Steven Goldfeder, CEO of Offchain Labs, stressed that passion for the mission trumps technical skill alone: “The best builders care deeply about what they’re creating.”
Cultural fit, communication, hard work, and a growth mindset are traits founders seek. Sometimes, a slightly less skilled engineer who’s enthusiastic about the vision is preferred over a more technically gifted but disengaged candidate.
Developing Internal Talent
The crypto ecosystem faces a talent shortage. Shaaran Lakshminarayanan, Founder at tanX, pointed out that training professionals from outside crypto – especially those proficient in other programming languages – is a successful approach. Eli Ben-Sasson, CEO of StarkWare, emphasized that nurturing leadership internally often works better than hiring externally.
Growing talent from within is key to long-term success.
Compensation Challenges
Amir Bandeali shared a cautionary view on token-based compensation, highlighting their volatility and real-time market valuation as downsides that can distract early teams. Nathan Allman also noted how compensation expectations swing dramatically with crypto market cycles, complicating internal alignment.
Many founders adopt a balanced mix of cash, tokens, and equity to maintain stability and incentivize long-term commitment. Market conditions often dictate adjustments in hiring terms, with bear markets typically offering better leverage to companies.
Hiring Best Practices
Implementing clear hiring procedures – including probation periods and work trials – helps founders evaluate candidates more reliably. Luca Prosperi, CEO of M^0, warned that rushing hires often leads to mistakes.
Winston Zhang suggested practical assessments during interviews are more effective than traditional question rounds. Shaaran Lakshminarayanan advised hiring proactively, before urgent needs arise, to avoid rushed decisions.
Eli Ben-Sasson likened founding a company to a marriage – success depends on shared values and mutual understanding beyond just technical alignment.
Forming a founding team in crypto demands a balance of strategic networking, technical focus, and cultural alignment. These lessons from top founders underline the importance of flexibility and vision as the ecosystem evolves.
Summary of Key Points:
- Network-Driven Recruitment: Leverage your own and your team’s connections to find top talent.
- Engineer-First Hiring: Prioritize technical hires to build your core product.
- Contractors for Early Development: Use contractors pre-Series A to conserve resources and prove product viability.
- Culture is Critical: Seek adaptable, passionate team members who fit your values.
- Internal Talent Development: Train and promote within to fill leadership gaps.
- Thoughtful Compensation: Balance cash, equity, and tokens with an eye on market cycles.
As the blockchain sector continues to advance, these principles can help you lay the groundwork for your team’s future success. If you want to discuss hiring strategies, culture, or compensation philosophy further, feel free to reach out—I’m always happy to share insights!