Read & Written by John-Miguel Mitchell

Startups love to talk about disruption, agility, and world-changing missions. Yet behind closed doors, founders whisper an uncomfortable truth: We can’t always compete for talent — not on salaries, not on brand recognition, and certainly not on the IPO glow that used to dazzle ambitious recruits.

Startups might not have the money or brand recognition to compete with big tech for talent, but they can still win by building and clearly communicating a strong, authentic culture. A great culture not only attracts and keeps the right people today—it also protects the company’s value during future exits like IPOs, acquisitions, or roll-ups.

But before we talk about how to build it, let’s be clear about what “culture” actually means.

What We Mean by Culture

The playing field has changed dramatically for startups:

• IPO fundraising has hit a 30-year low in London, reflecting a global decline. With uncertain exits, the appeal of startups offering quick IPOs has diminished. Founders now need to focus on attracting talent through culture, purpose, and mission rather than just the prospect of big payouts.
• AI talent wars are exploding salaries into the stratosphere. Top AI engineers now command $3M–$7M pay packages, up over 50% since 2022. Even mid-level researchers expect $500K–$2M in big tech. Who can compete with that if you’re a scrappy Series A startup?
• Meta has hired Apple’s top AI executive, Ruoming Pang, who was in charge of Apple’s foundational models team. Meta offered him a package worth “tens of millions of dollars per year” to switch jobs. This shows that big tech companies can easily attract top talent, leaving many startups unable to compete.

It’s no wonder many founders fall into “talent panic mode” — hiring whoever’s available, or leaning only on personal referrals because they don’t have time (or money) to build a proper recruiting engine.

But here’s the paradox: culture is the one thing startups can win on. It’s the unfair advantage that costs less than million-dollar salaries—yet pays off in loyalty, brand magnetism, and even smoother exit strategies.

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The Silent Culture Crisis

I’m always struck by how often leaders say:

“We hire fast because we’re small and can’t afford to lose momentum.”

“We’ll fix the culture later — right now we need butts in seats.”

Here’s the risk:

• Copy-paste team: Hiring purely for speed or via warm referrals often creates a team that looks and thinks just like you—but may not scale.
• Unclear story: Candidates stay confused about your mission and culture, and drift toward bigger brands that tell a clearer, more compelling story.
• VC concerns: Investors worry about Glassdoor blowups, talent exodus, and exit roadblocks if your culture is fragile and can’t withstand IPO or acquisition scrutiny.

So the question is: If you can’t outspend Big Tech, can you outculture them?

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Practical Ways to Attract Talent on a Budget

Here’s what I recommend to founders and the VCs advising them.

🔹 Quick Wins (Next 30–60 Days)

✅ Write your “Founder’s Letter.”

One page. Why does your startup exist? What problem do you solve? What’s non-negotiable in your culture? Share it with candidates. Use it in interviews. A story told by the founder carries far more weight than generic values on a slide deck.

✅ Audit your candidate experience.

Check your website, job descriptions, and interview process. Do they tell a compelling story of who you are? Or do they sound like everyone else?

✅ Introduce cultural signals into interviews.

Instead of only technical screens, include a conversation about personal values, growth goals, and what energizes (or drains) the candidate. Mission-driven folks will light up in this part of the discussion.

✅ Equity Storytelling Session.

Schedule a founder-led meeting to explain how equity works at your company. Don’t just share numbers—share your why. People stay for leaders who communicate fairness and purpose.

✅ Every new hire meets the founders—even for junior roles.

New hires feel valued when they meet the founders personally. It builds trust, shows transparency, and signals that everyone matters, regardless of title. This doesn’t require long meetings—a quick call or coffee can make all the difference.

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Intrinsic vs. Extrinsic Rewards: A Startup’s Secret Advantage

One of the biggest myths in startup hiring is that compensation is purely about cash and equity. The truth is, while founders should absolutely work toward offering solid extrinsic rewards like competitive pay and benefits, intrinsic rewards are often far more valuable—and far more persuasive.

Sometimes, the things that make sense… don’t cost cents.

Startups might not be able to pay $3M AI salaries, but they can offer meaning, ownership, and connection in ways that big corporations often struggle to replicate.

Here’s how it breaks down:

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Intrinsic vs. Extrinsic Rewards Startups Can Offer

Intrinsic Value (Internal Motivators)	Extrinsic Value (External Rewards)
Purpose & Mission Working on something meaningful that makes a difference in the world.	Salary & Cash Compensation Base pay, bonuses, raises.
Autonomy Freedom to make decisions, own projects, and shape outcomes.	Equity & Stock Options Ownership stake with potential financial upside.
Recognition & Visibility Being seen, appreciated, and acknowledged for contributions.	Perks & Benefits Health insurance, wellness programs, stipends, office perks.
Growth & Learning Steep learning curves, new skills, wearing many hats.	Job Title & Promotions Clear career path and title progression.
Impact Seeing direct results of your work on customers and the business.	Bonuses & Incentives Sales commissions, performance bonuses, spot awards.
Close Team Bonds Working closely with founders, tighter-knit teams, shared journey.	Retirement Plans 401(k), pension, company contributions.
Transparency & Trust Access to information, open communication from leadership.	Paid Time Off Vacation, sick leave, parental leave.
Flexibility & Life Balance More personalized working styles, remote options, understanding life outside work.	Equipment & Resources New laptops, software, conference budgets.
Identity & Ownership Feeling like an integral part of building the company’s story.	Job Security Perceived stability and lower risk.

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Why Intrinsic Value Matters

• Big firms can throw money around—but often lack meaningful work, personal growth, and close relationships that startups can offer.
• Many people will trade higher salaries for a sense of purpose, ownership, and belonging.
• Startups win when they clearly articulate these intrinsic benefits during recruiting and in everyday culture.

✅ Founder’s Exercise: Make two columns—Intrinsic and Extrinsic. List what your startup genuinely offers in each. Use that list as talking points in interviews. Authenticity wins.

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🔹 Short-Term (3–6 Months)

✅ Create a Culture Page on your website. Don’t bury your culture in a careers tab. Share photos, founder stories, and testimonials from your team. Authenticity beats polish.

✅ Clarify your value proposition to candidates. If you can’t pay $500K salaries, what can you offer? More ownership? Faster learning? Direct access to decision-makers? Spell it out.

✅ Engage your VCs as talent allies. Many VCs have networks of operators, executives, and interim talent. Tap them to help tell your story and make warm introductions.

✅ Plan Moment-Driven Offsites.

When cash is tight, founders often wonder: Is it worth spending $2,000–$3,000 per person on an offsite when we can barely afford salaries?

You might be thinking, that’s a hefty price tag for an early-stage startup. But here’s the catch: done right, an offsite isn’t a vacation—it’s a cultural signal.

Instead of just booking an annual January offsite because “that’s what companies do,” high-performing founders think strategically:

• Use offsites to rally the team during pivots or crises.
• Share raw truths about the company’s journey and future.
• Reinforce culture, values, and the founder’s personal vision.
• Recognize contributions publicly—often more impactful than cash alone.

Startups can’t compete with big-tech salaries. But they can create moments that build loyalty and clarity around the mission. An offsite becomes part of your employer brand—a story candidates hear from your team when deciding whether to join your rocket ship.

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🔹 Long-Term (6–24 Months)

✅ Invest in internal storytelling.

As you grow, culture has to scale. Record founder talks. Create internal newsletters. Celebrate wins and failures openly. This protects against disillusionment as you expand.

✅ Prepare for exit conversations early.

Even if an IPO or acquisition is years away, think about how your culture will look under due diligence. Investors will ask about employee retention, leadership stability, and Glassdoor reviews.

✅ Keep compensation creative.

Equity still matters. So does flexibility, learning opportunities, and unique cultural perks. AI engineers might leave $2M on the table if they believe they’re joining a mission-driven team that’s building something meaningful—it happens more often than you’d think.

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Culture Now… or Regret Later

It’s tempting to think of culture as something you’ll “fix later”—once you’ve hired enough people or raised your next round. But here’s the truth:

Culture is your strongest tool for attracting great talent today—and the very thing that protects your company’s value if you ever choose to sell or go public.

In today’s market, one question separates startups that thrive from those that stall:

“If your top candidate asked, ‘Why should I join you instead of OpenAI or Meta?’ — do you have a clear, human answer?”

If your answer is authentic, compelling, and rooted in what truly makes your culture unique, you’ll attract the kind of people who stay—even when IPOs slow down, AI salaries skyrocket, and roll-ups reshape the exit landscape.

Because culture costs less than cash—but pays off far more.

The founders and VCs who understand this will build companies that not only survive the talent wars—but win them.

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Questions for Founders and VCs

1. What makes working at your startup more meaningful than just collecting a paycheck somewhere else? (Because purpose is a currency that big companies can’t always match.)
2. Are you offering enough intrinsic rewards—like learning, ownership, and connection—to balance out what you can’t offer in cash? (Because sometimes the things that make sense… don’t cost cents.)
3. Do your job descriptions, website, and interviews clearly show what makes your company special—or do they sound like every other startup? (Because clarity attracts talent who belong with you—and filters out those who don’t.)
4. Are we coaching founders to articulate their culture as clearly as their business model? (Because talent joins cultures, not cap tables.)
5. How often do we challenge pitch decks to explain why someone would work at the startup—not just invest in it? (Because a strong culture story attracts talent even when cash is tight.)

Article was written by John-Miguel Mitchell who is the Founder and Lead Consultant at Ekipo LLC. If you’d like to learn more about how to design and build out the ideal workplace culture for your business, email him at jmitchell@joinekipo.com.

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