What Hiring Signals Do Investors Look for Before Funding?

Before investors ever read your cap table or product roadmap, they’re already reading *you.* 

How you communicate. How you lead. How you build teams.

In our recent Provider’s Edge episode, three seasoned HealthTech investors—Naomi from Form Ventures, Jasper from MedStarter, and Veda from Conductive Ventures—made one thing clear:

"Communication and consistency are bigger green flags than pitch decks."  

Founders who can attract *and retain* talent are founders worth betting on. 

This blog unpacks what investors look for when it comes to your hiring signals, retention mindset, and leadership DNA—especially if you’re raising from Seed to Series B.

Why Do Investors Care About Hiring Before Product-Market Fit?

Because execution risk is higher than idea risk.

Even the most compelling solution falls flat if you can’t build a team that sticks.

For early-stage founders, retention is the invisible engine of scale. If your team turns over every quarter, you're not building momentum—you're rebuilding trust.

What this tells investors: You're burning capital and losing speed.

On the flip side, if you’ve attracted a lean, loyal team—even pre-Series A—that’s a signal you’re a high-integrity leader who can scale sustainably.

Who Are the Founders That Signal Long-Term Team Retention?

Founders who:

• Follow up consistently (yes, even with investors)
• Respond quickly and with clarity
• Show traction in people, not just product
• Prioritize culture before compensation

In our episode, Naomi shared how one founder responded to her diligence questions *within hours*—with a Loom video walkthrough.

That signaled speed, clarity, and care. It also hinted at how they lead internally.

"That kind of founder? You want to work with them." 

— Naomi, Form Ventures

What Red Flags Suggest a Founder Can’t Retain Talent?

Here’s what causes investors to walk away:

• Communication breakdowns (especially during diligence)
• Blaming missed deadlines on team bandwidth
• Vague or transactional hiring plans
• No clarity on who’s doing what post-funding

Veda shared that poor communication—even late in diligence—has made her firm pass on otherwise promising companies.

If you’re not aligned with your team *before* the raise, you won’t be ready after it.

How Should Founders Demonstrate They Can Attract Top Talent?

You don’t need a massive team.

You need the right signals:

• Early hires that stay
• Advisors or contractors committed long-term
• Clear org planning—even if it’s future-state
• Evidence that people believe in your mission

Bonus points: Mention that top talent is already saying, "If you raise, I’m in."

Remember: Investors are evaluating your leadership the way top hires would.

When Should You Start Thinking About Retention? (Hint: Now)

Retention isn’t an HR function—it’s a leadership one.

And it starts before your first hire.

Build the habit of over-communicating, aligning expectations, and treating your team (contract or not) as long-term partners.

Retention isn’t about perks. It’s about shared purpose and follow-through.

What Role Does Storytelling Play in Retaining Top Talent?

You might think hiring decisions come down to comp packages, but investors know otherwise.

The best founders are great storytellers—especially when it comes to mission.

If your vision energizes others and your roadmap feels achievable, it becomes easier to convince top talent to stick with you through uncertainty.

Ask yourself: Does my story attract believers or just contractors?

How Do Culture and Communication Drive Long-Term Loyalty?

According to Jasper, inconsistency in founder communication is a major red flag.

 "If one week you're fired up and the next you're MIA—it shows up everywhere."

The way you communicate externally reflects your internal leadership style. 

Founders who update transparently, coach intentionally, and acknowledge mistakes build teams that stay—even when it’s hard.

Culture is how your team feels when you’re not in the room. Make sure it’s one worth staying for.

Where Can Founders Get Strategic Help on Hiring and Retention?

You don't have to guess your way through building your team.

PulsePoint Path works with early-stage and growth-stage HealthTech companies to:

• Create retention-proof onboarding systems
• Position hiring plans for investor confidence
• Build your hiring story into your pitch deck and due diligence

Want help with that? Let’s talk.

Would You Work for You?

That’s the ultimate founder mirror.

If the answer’s shaky, start there. Your future hires—and your future investors—are watching.

Here are 3 ways we can support you right now:

🎤Be a Featured Guest on the Provider’s Edge
Have traction and a story to share? Apply to join us on the show: PulsePointPath.com/Call-Sabrina

🎯 Get You In Front of Investors
We match you with the most aligned investors and decision-makers who care about your niche already. Apply at PulsePointPath.com/Pitch-Application 

About Sabrina Runbeck
Sabrina Runbeck, MPH, MHS, PA-C helps healthcare technology companies scale sustainably—without burning out their teams or running out of cash. She is the Co-Founder of PulsePoint Path and works alongside a 12-integrated board of advisors to help founders make strategic decisions that multiply impact and protect capital. Her signature 5D Integrated System helps companies move beyond one-dimensional problem solving—what they think the issue is—and instead, builds an Empowered Ecosystem across leadership, team dynamics, and systems alignment. This is how founders evolve from early traction to 10x growth. Sabrina is also a TEDx speaker, former Cardiothoracic Surgery PA, and trusted advisor with over 15 years of experience in public health, neuroscience, and business acceleration.

★ NEXT STEP ★
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