Series A Startups: Build, Operate, Transfer Remote Tech Teams

Series A Startups: Build, Operate, Transfer Remote Tech Teams

by Carlos A. Vázquez   |   June 14, 2020   |     4 min read
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Every startup needs capital investments to grow, and there are numerous ways through which a startup can gain financial support to expand and build its business legacy. One such manner of financing is venture capital. 

Venture capital that receives a start-up after it has reached its “break-even point” is often called the Series A. Each new round of financing goes to the next letter, Series B, Series C, and so on.

Series A funding is usually the first time a company has received capital from external investors, such as a “business angel capital” or some private investment group.

Series B funding is often received when the company is already profitable and wants to grow and expand to increase the profit margin.

Series A financing

As you saw above, startups rely on various funding options to gain the financial muscle they need to optimize their user base and product offerings. 

Series A funding can provide the capital that the startup needs to develop its products or services, implement their marketing strategies, and, most importantly…grow its team!

However, Series A funding startups face various challenges, especially at the HR front. 

HR challenges for series A startups

Startups often make the error of assuming and believing that HR functions are not relevant at the initial growth stage. They don’t look into hiring a separate team to manage recruitment, compensation, payroll, and look into their staff’s development or needs; this is an error that often costs many startups to fail as they find it challenging to hire and retain talented employees. 

While it is true that an HR function can be expensive to manage in-house during the initial stages, it is essential to have it outsourced. Numerous staffing agencies partner with startups and provide them with the best talent as per their needs. These agencies have the advantage of being connected deeply with the talent market, have an existing pool of resources, and provide the startups with the right profiles in shorter periods than when recruitment takes place in-house. 

The most popular variants of nearshore outsourcing are: captive operations, build-operate-transfer (BOT), joint venture, and fee-for-service. Your choice will depend on the requirements for talent availability, data security, IP protection, set-up time, flexibility, etc.

There are two main cases when staffing agencies can be useful for IT companies and become a “silver bullet.” The first one is solving a short-term task that does not require constant cooperation. But in the long run, you will probably prefer to hire people with the same mindset and effectiveness. So, you may turn to the build-operate-transfer model.

What is the Build-Operate-Transfer model?

Build-operate-transfer or BOT is a commonly used model in IT offshoring. As a rule, a tech company chooses an offshore partner to establish its software development center abroad. This process implies building, operating, and transferring the development office with its team. BOT in tech goals is to share risks and reduce costs.

Series A startups opt for BOT as their business solution. Generally, this model is designed for tech companies that want access to the global pool of talent and want to secure their IP rights on the product and focus on programming.

Something to consider

Startups are known to have fierce competition in the talent market. Quality technical talent is not only tricky to find but also a challenge to retain and manage. 

Since Series A startups have limited funding, the BOT model can provide you with new opportunities for doing tech business like managing talent’s payroll, benefits, workplace, accounting, legal and other processes.

Following the same line of thought, here are some examples of the BOT services that Coderslink provides to Series A startups:

IT Staffing for Build and Operate Stage. 

  • Start with IT staffing to start hiring fully dedicated remote developers for your LATAM office. Access managed payroll, benefits, and performance.

Permanent Placement for the Transfer Stage. 

CodersLink has partnered with over 70 different companies to help them find the talent to tackle their existing projects, get follow-on funding, or build complete teams

We’ve grown BOT teams in Guadalajara, Monterrey, and Mexico City of more than 40 people. Our pool of over 12,000 pre-vetted candidates helps BOT partners shorten recruitment timeframes by 30%, save over million in labor costs during their first year, and establish procedures and policies for long-term growth. 

Our partnerships are long-lasting and based on transparency and communication. 

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