Hiring between portfolio companies

The question of how we handle companies within the portfolio company hiring from each other has come up a number of times recently and we thought it would be a good idea to hit the subject head on, publicly.  With over 40 companies in the Foundry portfolio, and with many of these companies concentrated in specific geographies (in particular Boulder, San Francisco, Seattle and New York) there are often times when an employee from one company in which Foundry has an investment applies for a job or is approached by another company in which Foundry has an investment.

To be absolutely clear, Foundry has no policy relating to the hiring of employees by one portfolio company from another. We believe in the free and fair movement of people and ideas and we don’t ask that portfolio companies refrain from hiring employees from each other. Ultimately it’s up to each company to determine their own hiring practices based on what they believe to be the best interests of their business.

  • Tim Johnson

    This gets to the limits and expectations of how ‘involved’ the investors are in each company.  I agree that investors shouldn’t be involved in hiring decisions but I can think of one corner case where the investors should/ought to be concerned: when the founder wants to move.  What do you do when the driver for the investment (the founder) wants to jump ship?  Are his hands tied to the company or is he free to move as well?  Is there typically a time limit with some measure of company viability involved?

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  • http://one.valeski.org Jud Valeski

    right answer. Good. Thanks for posting.