 "IT hiring easier than last year; founders hopeful of resumption in funding")
The employees in IT companies are sticking to their jobs, and this has resulted in tech salaries cooling down when compared to the last year, according to a report in The Times of India (ToI), which cited a survey that covered more than 250 founders across various stages and sectors.
Of the 250 founders the VC firm Elevation Capital spoke to, about 46 per cent said that fewer people have left their jobs and retention has improved. Moreover, hiring tech talent has also become easier than in the last one year, due to the decline in salaries.
End of funding winter
Even as the technology sector has witnessed a decline in funding across the globe, founders are hopeful that a 'warmer funding season' is on its way in 2024. Half of the people who were surveyed said that the funding is likely to get easier over the next 12 months, the ToI report stated.
While being hopeful of easier times ahead, the founders also highlighted the importance of maintaining a runway of at least 18 months. As things stand, one in three founders are operating with a runway of less than 12 months, the report said.
Focus on revenue growth and profitability
A partner at Elevation Capital, Mridul Arora, was cited in the ToI report as saying, "Revenue growth is a key priority for founders, and rightfully so."
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Around 65 per cent of the founders said that revenue growth was a key concern for them. On the other hand, 58 per cent of them said that they aspire to be profitable in the near-to-medium term, and 18 per cent said that they have already achieved these objectives.
To achieve revenue growth and profitability, entrepreneurs are cutting on flashy expenditures; 38 per cent of the founders said that they have curtailed their spending on marketing.