Executive Hiring
lower-mid-market advisory

The VP Hiring Hazard: Why 40% of First Executive Hires Fail in 18 Months

Client/Category
Team & Hiring
Industry
B2B Tech
Function
Talent

The Series A Trap: Buying Logos Instead of Builders

You just closed your Series A. The wire hit your account, and your board made one thing clear: "It's time to level up the team." You feel the pressure to step back from the day-to-day—founder-led sales are exhausting, and you can't be the interim CTO forever.

So, you go hunting for a VP. You find someone with a shiny resume—maybe they ran a division at Salesforce or led engineering at a Series D unicorn. They cost $250,000 in base salary and demand 1.5% equity. You hire them, relieved that you can finally "delegate."

Six months later, you realize you made a $2 million mistake.

This is the Series A Trap. Founders confuse credibility with capability. The executive who thrived in a resource-rich Series D environment often suffocates in a resource-constrained Series A environment. They are "Scalers"—experts at optimizing existing playbooks—being asked to do the job of "Builders"—people who write the playbook from scratch.

The data confirms this mismatch. According to Gong and other industry analyses, the average tenure of a VP of Sales has shrunk to just 19 months. That means most VPs are fired or quit before their equity fully vests, leaving the founder with lost momentum, a broken culture, and a massive hole in the P&L.

The Benchmarks: When to Hire "Head of" vs. "VP"

The biggest driver of executive failure is Title Inflation. 92% of workers now believe job titles are inflated, and startups are the worst offenders. Giving a "VP" title to your first sales hire often sets them up for failure because it implies a strategic, hands-off role that doesn't exist yet.

We analyzed data from over 3,600 VC-backed companies to create a realistic hiring timeline. Here is the optimal sequencing for your first executive hires:

1. The "Head of" Phase (Seed to Series A)

Revenue Range: $0 - $3M ARR
Key Hire: Head of Sales / Lead Engineer
Profile: The Builder. Still carries a quota or writes code.
Comp Benchmark: $140k-$160k Base + Heavy Equity (0.5%-1.0%)

At this stage, you do not need a VP. You need a captain. Hiring a VP of Sales before you have $1M in ARR is statistically correlated with a 40% failure rate within 12 months. As noted in our guide on the real cost of bad hires, the financial damage of a mis-hire here is roughly 6x to 27x their base salary when factoring in opportunity cost.

2. The True VP Phase (Series B)

Revenue Range: $5M - $15M ARR
Key Hire: VP of Sales / VP of Engineering
Profile: The Scaler. Focuses on hiring, process, and enablement.
Comp Benchmark (2025): $180k-$220k Base + Performance Bonuses (OTE $350k+)

This is where the title matches the role. By Series B (typically ~20 months post-Series A), you have a repeatable motion. You need someone to recruit 20 reps, not close the first 10 deals. Recent data from Jobright shows that Series B companies generate ~125,000 job postings, significantly ramping up "management" roles compared to Series A.

The Tenure Reality Check

  • VP Sales Tenure: 18-19 Months
  • VP Engineering Tenure: 24-30 Months
  • Turnover Rate: 25% of startup employees leave in Year 1

If your VP hires are churning in under 18 months, you aren't just losing talent; you're resetting your growth curve. See our analysis on why VP of Sales hires fail for a deeper dive into the "Stage Mismatch" phenomenon.

The executive who thrived in a resource-rich Series D environment often suffocates in a resource-constrained Series A environment. You need Builders, not Scalers.
Justin Leader
CEO, Human Renaissance

The Diagnostic: Are You Ready for a VP?

Before you sign that offer letter for a $220,000 executive, run this diagnostic. If you cannot answer "Yes" to at least 3 of these questions, you likely need a "Head of" (Builder), not a VP (Scaler).

The VP Readiness Checklist

  1. Is the Playbook Written? Does a VP need to create the process, or scale an existing one? If they have to invent the pricing model, the pitch deck, and the comp plan from scratch, you need a Builder.
  2. Is there a Team to Manage? A VP of Engineering with 3 engineers is a glorified manager. A VP needs a layer of middle management (or at least 8-10 direct reports) to justify the strategic overhead.
  3. Can You Afford the "Non-Working" Time? True VPs spend 50% of their time on recruiting, board slides, and strategy. If you need someone to close deals or push code 80% of the time, the title is wrong.

The 90-Day Litmus Test

If you've already made the hire, how do you know if they're a mismatch? Look for the "Dashboard Trap." If your new VP spends their first 30 days building complex Salesforce dashboards but hasn't joined a single customer call or code review, they are likely a big-company executive hiding in a startup role.

Your Action Plan:

  • Downgrade the Title, Upgrade the Equity: For your first leader, offer "Head of X" with a path to VP. This protects you from title inflation and motivates them to earn the promotion through growth.
  • Hire for the Next 12 Months, Not the Exit: Don't hire the person who can run a $100M company. Hire the person who can get you from $5M to $20M.
  • Verify "Builder" Credentials: In the interview, ask: "Tell me about the last time you had to build a team with zero budget and no recruiter." If they struggle to answer, they aren't ready for your Series A reality.

Hiring the right leader at the wrong time is just as deadly as hiring the wrong leader. For more on navigating this transition, read our guide on the Founder-to-CEO identity crisis.

19
Months Avg Tenure for VP Sales
$2M+
Cost of a Failed VP Hire
Let's improve what matters.
Justin is here to guide you every step of the way.
Citations

We're ready to respond to your doubts

Understanding your habits and bringing future possibilities into the present.