When most founders think about getting ready for funding, their minds immediately jump straight to pitch decks, financial models, or market research. And yes, those are important. Yet another piece that investors look for that often gets overlooked is your people strategy.

Over the years, I have seen that Investors are not merely funding ideas. They are funding the people who will bring those ideas to life. That is why having a strong talent plan, including how you hire, lead, and scale your team, is becoming one of the most important signals of funding readiness.

Why Hiring for the “Now” Is a Blind Spot

In my work with founders, one of the most common mistakes I see is hiring only for immediate needs. It makes sense; startups are unpredictable, so you look for hardworking, flexible people who can wear many hats. The issue is that where your company is today is not where you want it to be tomorrow.

Many founders fall short by recruiting to plug present gaps instead of acquiring talent for the future. Recruitment patches holes. Talent acquisition builds a team aligned with your values, mission, and long-term vision.

My advice is simple: do not just hire for today, hire for where you want your company to be. Investors notice, because they know the quality of your people ultimately shapes the return on their investment.

When People Strategy Wins Investors Over

I learned firsthand how powerful a strong hiring plan can be. At one start-up I worked with, we made it a habit to include staff profiles in every proposal. It seemed like a small detail, but it consistently sparked investor interest.

In one case, it went even further. The investors were so intrigued by our team that they audited our operations and HR processes. They reviewed our policies on safety, recruitment, retention, and engagement. Then they visited our office and spoke directly with employees to see if our culture matched what we had written.

That level of scrutiny could have been intimidating, but it worked in our favour. They saw we were living our culture and that credibility was what ultimately convinced them to invest.

What Investors Really Want to See

Many founders think “team” begins and ends with co-founders. From an HR perspective, that is not enough. Investors want to see a roadmap for how you plan to attract, develop, and retain talent over time.

A 2023 McKinsey & Company report found that fewer than 25% of organisations have a people strategy roadmap that evolves with the business. Having one, even a simple one, signals vision and operational maturity. It says to investors: we know where we are going, and we know who we need to get there.

Post-Funding Mistakes to Avoid

Now, let’s fast forward. You have secured the funding. The temptation is to start hiring like crazy. I call this the “green light effect.” Money lands in the bank, and founders see it as permission to build a large team overnight.

But, rushed hiring, overhiring based on projections, or failing to define roles properly are three of the biggest pitfalls I have seen. They lead to confusion, wasted resources, and, in some cases, layoffs that shake employee morale and investor trust.

Before you hire, ask yourself:

• Which roles are urgent, and which can wait?
• Should the role be permanent or temporary?
• Can we sustain it long-term with salary and benefits?
• Do we have clear job descriptions and success metrics?
• How do these hires align with investor expectations?

Skipping these questions creates chaos. Answering them builds confidence.

Operational Maturity and Culture Go Hand in Hand

What does operational maturity really look like? To me, it is about readiness. It is being able to deliver value while staying flexible enough to adapt and improve. Companies that do this embed transparency, communication, and resilience in their culture from the start. That is what sets them apart.

The red flags, conversely, are easy to spot. Founders who focus only on business goals and leave culture to chance. Leaders who dismiss diverse perspectives as a poor cultural fit. Start-ups that constantly shift strategies without explaining the impact to employees. No investor wants to bankroll a disengaged, high-turnover, and toxic workplace.

Scaling the Right Way

Investors love the word “scalability.” From an HR perspective, scaling responsibly means aligning people, processes, and systems so the business can grow without breaking apart.

When it is done well, you get high performance, a strong culture, and smooth operations that sustain long-term growth. When it is done poorly, you get burnout, turnover, and miscommunication that damage both the company and investor confidence.

Why HR Advisors Matter

This is where HR advisors or consultants can make all the difference. We act as a bridge between ambition and execution. We help founders design intentional hiring plans, build the right systems, and create a culture that supports growth.

When founders are under pressure, we help them prioritise and plan. We protect the business from ethical, cultural, and regulatory risks, and we make sure growth happens with intention, not panic.

The Biggest Lesson

Looking back at my journey as a recruiter, consultant, and mentor, one lesson stands out clearly: your people strategy is your growth strategy.

I have seen companies with great products lose millions because of poor HR practices. I have also seen small organisations that invested in their people early achieve sustainable growth and investor trust.

My advice to founders is this: treat your workforce as assets, not overhead. When you invest in people with intention, financial success follows every time.