For an early-stage startup, hiring the right executive team is a make-or-break moment. But most executive search firms make the process harder than it needs to be with sky-high upfront fees, unclear processes that lead to mediocre candidates and incentive models that reward expensive hires over the best fits.
This misalignment is what inspired Andrew Cronin, Matthew Toner and Garri Zmudze, two veterans of executive search and a seasoned business expert, to launch Founders Search Advisors (FSA). After years of working with major investment banks and pharmaceutical companies, they chose to focus exclusively on startups, where they felt they could have a more meaningful impact.
FSA was built to disrupt the old model by offering fixed fees and aligning incentives through an equity-based option, giving them direct “skin in the game” with the founders they partner with.
In this interview, FSA founder and managing director Andrew Cronin breaks down the most common hiring mistakes founders make, explains his firm’s unique cross-industry approach and details how a venture-style model for executive search can better align incentives for long-term success.
Cointelegraph: What are the top hiring pitfalls you see founders repeat, and how do you help them avoid those traps?
Andrew Cronin: The big one is making too many executive hires too early. Running up a huge wage bill far earlier than they need to. Founders need to really consider what they need now, in this moment. Obviously, they need to plan ahead, but they don’t need to build a full executive leadership team in the first 12 months.
They need to identify where they need help and then consider if this is a long-term requirement. If not, then perhaps they can hire an interim or part-time chief business officer, for example.
They should also consider what exactly they need this person to do. A chief business officer, for example, is unlikely to be hammering the phones and making cold calls to drive business. When you hire a chief business officer, you are really buying their relationships.
Likewise, building a good board of directors is often not given enough attention. Founders often think they need to hire a full-time person when finding a board member willing to be more heavily involved in the first 6-12 months is usually a better decision.
We also see founders making the wrong hires because they are overwhelmed. They will either hire a friend or a former colleague or the first candidate they meet with who they think is “good enough” to do the role. In reality, this will just end up costing them more time in the long run, as they will inevitably need to exit that person and then run a new search to replace them.
We push founders to write a 6-12 month “success profile” instead of a generic job description, so they know exactly what they’re hiring for. We help them build a lightweight but consistent interview process; skills, values and adaptability are each assessed deliberately.
We also encourage founders to run candidates past diverse sounding boards. Finally, we advise them to really focus on the onboarding process. It is important to invest more of their time in the first 90 days, so the hire ramps quickly and integrates into the culture.
CT: What led you to focus on the unusual combination of fintech/crypto, technology, energy and life sciences?
AC: It is a combination of our background and where we see the markets moving in the future. I spent the first 6 years of my career recruiting in quantitative finance and fintech. So, we do know these markets.
We tend to do most of our work at the cross-section of technology and next-generation products. We love anything weird and new. Crypto fits in well because of the cross-section with other industries and the move into the mainstream.
We have a huge network in finance and can help crypto companies looking to legitimize their business by adding credible folks from the finance and tech sectors to their boards and executive teams.
We are already helping crypto companies to do exactly this, and it is clear there is an appetite from traditional finance and tech executives to gain more exposure to the crypto markets.
Honestly, the process at the executive and board level does not really change from industry to industry. We run a very thorough research process, identifying top companies in the sector as well as exciting boutique companies working on new technologies in the same space.
We work closely with research analysts at LongeVC, who cover these markets. They offer great advice on companies in the space working on similar science or technology, or companies going through inflection points. Especially now with artificial intelligence.
We used to do this all manually, and it was extremely expensive and time-consuming. But with AI, we have a jump start, and if you know what questions to ask and then how to most effectively utilize the response, it can be a real game changer.
CT: How does that specific mix produce better leadership matches than single-sector firms?
AC: Honestly, I would not say that it does. If you know a very good single-sector firm operating in your space, they may be the right option for you. There just aren’t that many of them.
If you look at the biotech industry as an example, you see that the market crashed hard at the end of 2021 and still has not recovered. Since then, companies have been doing everything possible to win business, including dropping fees. But this means they need to take on a lot more work to balance the books. No one wants to fire good people, so you do whatever you can to bring in revenue.
By diversifying, we have been able to bring in a steady stream of business, not taking on more than four searches at a time (between two of us executing). We therefore have so much more time to work on each search, which means we have been able to successfully execute searches across different industries and sectors.
Also, companies or even candidates often want to diversify into new sectors. We have a great track record of moving candidates across industries. Understanding how these industries operate means we know when we can look in different industries for candidates with the same skills.
CT: Why accept payment in crypto, and what have you learned about volatility, compliance and founder preference from doing so?
AC: Well, primarily, we are big believers in crypto. Some founders, especially in Web3 and gaming, prefer to pay in the currency they’re raising or transacting in. Meeting them where they are reduces friction. Accepting crypto also demonstrates we understand the ecosystems our founders operate in and aren’t constrained by old financial rails.
We see it as a long-term, meaningful differentiator. More often, the “optionality” matters as much as usage. It signals alignment with founders building in this space.
CT: When do you choose equity over cash, and how does that venture-style model change your incentives and the way you run a search?
AC: We only take equity when it makes sense for both parties — usually, early-stage companies with exciting business models where we see opportunities for long-term growth. We believe in our clients and want them to succeed. Having equity with our clients means skin in the game, so we have an extra motivation to execute to the best of our abilities.
If a client is paying in cash or equity, we are always fully focused on finding the best possible person to fill the role. We want the repeat business, and our effort or approach does not change. We offer equity payments to help our clients. Especially our cash-constrained clients.
I also think the search industry has become too transactional. By taking equity instead of cash, we are saying to these founders that we believe in your company, and we want to be part of helping you build it. And of course, we are going to be more incentivized to find them the best possible candidate if we are invested in the company.
CT: Could you share insights on your partnership with LongeVC and what it unlocks for clients?
AC: LongeVC has a dedicated team of research analysts working across different sectors and industries. We liaise with these analysts to help get a jump start on our research. They can advise us on exciting companies in the sector, which we may be able to target.
The best talent is expensive. And that can be a barrier for a lot of startups. So Founders Search Advisors has set up an internal investment vehicle whereby FSA can invest a certain amount of capital into a company to cover the cost of the compensation for a top-tier executive.
LongeVC also has a partner fund, Ani VC, in the pet health space. This is another market we are very interested in exploring as we continue to grow. So LongeVC’s knowledge and relationships will be of great value on this effort.
CT: What does a long-term client relationship with FSA look like after the hire?
AC: That really depends on the client and their needs. If we have placed a CEO, we may help to build out the rest of the executive leadership team. If we have placed a chief financial officer, we may help them find a controller. It varies so much company to company in the startup world that it is tough to say.
For sure, though, we like to stay in close contact with all of our previous clients. We send them interesting articles and keep them abreast of anything relevant we hear in the market from candidates and clients.
We will also introduce them to exceptional candidates who we speak with if we feel they could be a good fit for the company, or someone we feel they may value from networking with.
CT: Looking ahead, how do you see executive search evolving in frontier tech, health and finance — and what role will FSA play in that future?
AC: As AI, space and deeptech scale, the bottleneck won’t just be capital, it’ll be leaders who can translate complex science into scalable businesses. Search will shift from “title-matching” to curating leaders who blend technical credibility with commercial execution.
In fintech and crypto, regulation is catching up fast. The next generation of financial leaders will need to thrive in uncertain policy environments while scaling products globally. Search will increasingly value adaptability, not just pedigree.
Biotech is in a holding pattern at the moment. The industry has been struggling since the end of the pandemic and will most likely continue to do so until the IPO market and M&A activity pick up.
Investors will be much more cautious with their investments, meaning biotech startups need to ensure they spend their money wisely, bring in the right talent at the right time and work with part-time/interim executives when called for.
We will leverage better tools and resources to map talent, but pair that with storytelling to help founders and boards attract and onboard the best talent.
Learn more about Founders Search Advisors
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