Executive Team Building for Startups: What Research Shows Actually Works 

“Who’s your first hire?”

It’s a question that haunts every founder. Get it right, and you build momentum. Get it wrong, and you could sink your startup before it really begins. 

The Truth About Startup Success

Most founders think product-market fit determines success. But venture capitalists know better. Studies show they blame 60-65% of startup failures on problems with the founding team, not products or markets. This statistic changes how we need to think about building startup C-suites. 

It All Starts with the Founder…

Silicon Valley’s young founder mythology doesn’t match reality either. You might find it surprising, but the average founder of companies that achieve notable growth is 45 years old, and the chances of creating a high-growth startup actually increase with age, continuing up to age 60. 

Experience makes a difference, too. Previously successful founders bring well-developed industry knowledge and professional networks. Their higher previous salaries also act as a natural filter—they tend to pursue more promising opportunities rather than marginal ideas. 

This experience pays off in fundraising as well. Founders who have previously built successful companies receive valuations 39% higher than first-time founders. They also often have direct connections to venture capitalists, making fundraising more straightforward.  

But individual success isn’t enough in startups. While founders start the company, the executives who join them determine whether it succeeds or fails.  

Konstantin Margaretis, CEO of the scale-up Skladon, confirms this perspective from his own experience. Skladon has grown from just three co-founders to employing hundreds during peak season, becoming recognized as a Deloitte Fast 50 organization. “We had three co-founders to begin with. One was focused on sales, one on IT, and me. I was responsible as CEO, and I also covered finance and human resources. Nobody was responsible for fulfilment at that time, so I essentially covered that as well,” Margaretis explains. 

The Composition of Your C-Suite Team Matters

Research points to clear patterns in startup executive team composition: having more than 80% of your executive team in purely business roles reduces your chances of success. The most effective mix includes 25-75% business roles, balanced with technical, product, and operational leaders. 

This balance works because mixing different backgrounds gets better results. When product know-how meets business experience, startups grow better. The best teams include people who get both the technical side and the business side. Don’t stack your team with MBAs—bring in people with engineering experience, experts who’ve run operations, and leaders who’ve managed big projects. Like a table, your executive team needs different legs to stand steady. Stack all the weight on one side—like loading up on business degrees—and the whole thing tips over. 

… Education Should Be a Team Composition Consideration

Education plays an important role in this team dynamic too. While total years of education correlate positively with raising capital, the type of education matters more for growth. Degrees in economics and management show the strongest correlation with venture growth, followed by technical and scientific education. This doesn’t mean you should push out your science and tech people in favor of business degrees—remember what we said about balance. 

Higher education levels across the team generally improve survival rates, so you want educated people, but not just a collection of Ivy League MBAs. And here’s something worth noting: shared educational backgrounds between founders and investors can increase the likelihood of investment by up to 57%, particularly when they attended the same institution. This education advantage starts with founders but applies to every executive hire. 

Who Should Be Your First Executive Hire?

Understanding these fundamentals about team composition and backgrounds leads us to an important question: who should be your first executive hire? The answer lies in focusing on growth. 

While conventional wisdom suggests hiring a Chief Financial Officer (CFO) and Chief Revenue Officer (CRO) almost immediately, this approach may not be the best course of action for early-stage startups. Though financial expertise is absolutely necessary, a dedicated CFO typically only becomes non-negotiable when your company reaches $50M in revenue. Until then, a capable controller or accounting team can manage your finances. In the early stages, a Chief Commercial Officer (CCO) or Vice President of Sales often delivers more immediate value. 

For Skladon, prioritizing core business needs guided their hiring decisions. When asked about their priorities when scaling, Margaretis emphasized, “Sales! Our service focuses on outsourcing fulfilment processes for mid-sized e-shops. This was a new service here in the Czech market and something new for our prospective B2B customers. It was difficult to sell our service in this market at first, but later we were able to get market traction.” 

This sales-first approach isn’t unique to Skladon. Other scale-ups hit the same wall. Astrid Thienpont, Chief Executive Officer of InTouch, ran into this exact problem: “We realized that our sales process lacked scalability and that the pressure on our core team was becoming too high. It became clear that hiring a Vice President of Sales could be a game-changer. We needed someone who not only closes deals but also builds a structured sales engine, refines processes, and leads a team toward sustainable growth. For a scale-up, this is a crucial step to further professionalize and accelerate international expansion.” 

This rings true with so many startups and scale-ups. In the early days, founders do all the selling because nobody knows the product better. But there comes a point where that falls apart. Calendars fill up with sales calls. Deals take longer to close. Teams start dropping balls. 

Your first executive hire should consequently prioritize revenue generation and market establishment. For most startups, this means either bringing in a CCO or a VP of Sales, depending on your specific growth challenges. 

The CCO oversees both marketing and sales functions, while the VP Sales concentrates specifically on selling effectively. This leadership matters because startups and scale-ups need to quickly move from development to market engagement—having the right commercial leader helps ensure the company doesn’t get stuck perfecting their product but instead launches with a viable version that can start generating revenue and customer feedback. 

When interviewing commercial leadership candidates, look for strategic thinkers with an understanding of how sales processes scale. The ideal candidate understands your vision and translates it into actionable strategies. Their background should include proven success in team building, go-to-market execution, and implementing scalable systems. 

When Should You Bring in a Chief Marketing Officer?

The natural next question after deciding on a CCO or VP of Sales is: when should you split commercial leadership and bring in a dedicated Chief Marketing Officer? 

Recent research shows that 63% of Fortune 500 companies have a Chief Marketing Officer (CMO) or equivalent marketing executive who reports to the CEO. However, this varies by industry and business model—84% of B2C companies have CMOs, compared to just 48% of B2B companies. 

Despite how common CMOs are in established companies, research found that early-stage startups did better when keeping sales and marketing under one leader, at least initially. The study showed that splitting these functions too early created coordination problems and slowed growth. 

This alignment advantage is a big reason the CCO role delivers such value for growing companies. A unified commercial leadership ensures that marketing and sales strategies work together effectively—from lead generation and brand awareness campaigns (both online and offline) to conversion tactics and direct sales processes. This integration creates a more coherent customer experience and helps startups allocate their limited resources more effectively. 

When properly executed, this structure allows for coordinated strategy while preparing the groundwork for future specialized roles. 

Pay attention to clear signs that marketing needs its own leader, however: when you start selling to different types of customers, each needing their own approach, or when brand building becomes as important as direct sales. Sometimes this happens at Series A, sometimes later—it varies by business. 

How Often Should You Create New Executive Roles?

As your company grows, your leadership needs will change. Starting out means keeping things simple with a small team of C-suite leaders, like a CEO, CCO, and COO. When you hit Series A, you might need more specialized leadership, often bringing in a Chief Technology Officer (CTO) or CMO. By Series B and beyond, you’ll likely need someone focusing on organizational growth—typically a Chief Human Resources Officer (CHRO). 

Research shows that successful startups added C-suite roles at about half the rate of their struggling peers. They focused on making existing roles work better rather than constantly adding new ones.  

Skladon’s approach to building their executive team aligns with this research. Margaretis notes, “It took a decent period of time before we significantly expanded the executive team. After three to four years, we added a Chief Logistics Officer first. He was central to improving our fulfilment and logistics operations. We then hired an experienced Sales Director to bring international sales leadership experience to the team. After this, we hired experienced Chief HR and Financial Officers.” 

How Should Your Executive Team Change During Growth Phases?

When startups hit rapid growth, everything changes—including what you need from your leadership team. Successful companies often shift responsibilities among their executives during these periods. Sometimes they need new roles entirely. What worked at 50 employees rarely works at 500. 

It’s also important to recognize that some members of your executive team may not be equipped to handle the business demands of a scaling company. Being too emotionally attached to early executives can hinder necessary changes. The flexibility to replace team members when their skills no longer match the company’s needs is essential for continued growth. This requires honest assessment of your team’s capabilities and the willingness to make difficult personnel decisions when the company’s evolution demands it. 

Studies show that teams who could adapt their structure during growth phases outperformed those who stuck rigidly to their original setup. This flexibility in roles and responsibilities becomes increasingly important as your company scales. 

When asked about what role contributed most to Skladon’s business at the start, Margaretis reflected, “Actually, I need to say my role as CEO. At the start of the company, I was CEO and co-founder, and I had to run everything! I needed to roll up my sleeves and be hands-on in all aspects of the business, which was a challenge.” However, as the company scaled, this changed dramatically. “In fact, it is the complex and combined efforts of the whole executive team at this point. The efforts of one person are not enough—every member of the management team needs to contribute in order to drive a successful company. You really need a great and experienced team and having smart people who collaborate together means that the company can perform at its best as we scale and respond to market changes.” 

How to Build a Startup Executive Dream Team

Considering the research, it becomes clear that successful startup teams share common traits both in their habits and their composition. They balance business and technical knowledge, maintain lean executive teams until well past Series B, and understand that growing thoughtfully and sustainably matters more than growing fast. 

Building a startup executive team isn’t about copying other startups. It’s about understanding what creates success and applying those lessons to your specific situation. The founder’s own strengths and weaknesses should guide early executive hires. A commercially-driven founder might benefit most from bringing in a solid CFO first, while a founder strong in product but weaker in people management might need to prioritize an HR leader. This is why private equity firms often assess the founder carefully before investing, using this evaluation to help determine the optimal team composition. 

The important thing, however, is to with the basics. Then build from there based on what your business needs, not what you think you should have. 

Beyond skills and experience, it’s important that new executives understand and believe in the vision of the organization. Alignment with the founder’s mission and the company culture matters as much as technical capability. Executive hires should complement not just the skill gaps in your organization but also reinforce the vision of what you’re trying to accomplish in your market. 

Every executive hire should solve a specific problem. Every role should strengthen your company. Get this right, and you’ll create lasting success. 

About the Authors

Tom Goorman is Managing Partner of Stanton Chase Brussels, Member of the Governance Committee, Global Functional Leader for Marketing and Sales, and Global Subsector Leader for Software. He has over 20 years of experience in executive search, providing strategic partnerships to clients across various industries, including technology, industrial, telecommunications, and professional services. He possesses a talent for discovering and nurturing C-suite executives and board members who drive exponential growth and success for their organizations. 

Dillon Werry is Associate Partner at Stanton Chase Prague and Regional Functional Leader for Startups and Scale-Ups in EMEA. With over 15 years of experience in recruitment and executive search, he has extensive expertise placing senior executives within technology companies across both Czech-owned organizations and international firms. His functional specializations include marketing and sales, startups and scale-ups, and supply chain, where he consistently delivers critical hires that drive client satisfaction and business growth.