After the 2024-25 job cuts at , and other tech companies, the second wave of tech layoffs is rewriting the startup labor market.

Skilled professionals are suddenly available, creating both opportunity and pressure for founders and workers alike. Startups now compete for talent that once seemed untouchable, while employees face longer job hunts and rethink how and where they work.

Higher expectations, more side gigs

With talent flooding the market, candidates are demanding more flexibility and clearer growth paths, even as many accept contract work or lower pay to stay employed. The typical job search now stretches six to seven months, even longer for those needing visas or relocation. That uncertainty has fueled a surge in freelancing and side projects.

reports that now have a side gig, with more than half of them having started in the past two years. While many professionals didn鈥檛 plan to freelance, they turned to it because they had no other choice. For some, it has proved liberating, with compared with corporate roles, according to our internal data.

Despite all the buzz in the media and even on , overemployment 鈥� the trend of holding two jobs 鈥� remains a niche phenomenon, affecting according to the . The more common pattern is a mix of contract work and short-term projects, which gives startups a chance to hire A-level talent for fractional roles they couldn鈥檛 have afforded before.

Smaller, sharper teams

Payroll is every startup鈥檚 biggest cost, and founders are trimming teams while raising output per employee. The examples are striking. reports about with a staff of only 11.

has reached roughly with 15-20 people. Data from shows that the average seed-stage team in the consumer and fintech since 2022.

This lean approach is spreading beyond early-stage ventures. Around say they are open to hiring freelancers during peak workloads; more than 28% already integrate them into daily operations. As this makes clear, smaller core teams, supplemented by trusted project-based workers, can move faster and spend less.

Opportunity on both sides

For workers, the takeaway is that startups may now be the safer bet. Mid-sized firms that once promised stability are cutting jobs, while startups are candid about their risks and can reward performance with equity or future roles. A short contract can become a long-term stake.

On the other hand, for founders, today鈥檚 market is a chance to recruit top engineers, designers and operators at terms that were impossible two years ago. It also demands a new mindset involving compensation flexibility, project-based roles and hiring processes built for speed.

All in all, the second wave of layoffs has changed expectations and shifted supply and demand in the job market. Workers are blending traditional jobs with side gigs, and startups are proving that small, focused teams can out-execute much larger competitors.

On both sides, adaptability is now the ultimate advantage; companies that remain nimble will win.

, founder and CEO of , is an entrepreneur with more than 20 years of experience, and a freelance economy pioneer who aims to transform how companies engage with contractors. In 2014, Shynkarenko launched his first HR tech company, , a fintech payroll company for freelancers, which showed $10 million-plus in revenue for 2022 and 2023. In early 2024, responding to the growing demand for specialized solutions for long-term interaction with contractors, Solar Staff, as a global company, pivoted to Mellow ($1 million MRR).

Related reading:

• The SA国际传媒 Tech Layoffs Tracker
• Data: Tech Layoffs Remain Stubbornly High, With Big Tech Leading The Way
• More Layoffs Are Coming. Here Are Hard-Earned Lessons From A Former CEO Who鈥檚 Been There On Doing RIFs The Right Way

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When is the right moment to shift your company, your role, or even your entire industry?

Ask a dozen people, and you鈥檒l get a dozen different answers. But in venture capital, one thing is clear: we are at the peak of a talent shake-up.

The breaking point: 2023-24

Let鈥檚 rewind. The bottom of the venture cycle hit in 2023, a year that didn鈥檛 just hit valuations and deal flow but also put immense pressure on VC talent.

The downturn led to frustration, misalignment and career soul-searching. For some, it was a breaking point. For others, a wake-up call.

Either way, it set the stage for one of the most dramatic talent shifts the industry has seen.

What fueled this movement? Many factors, among them:

• The urge to break free: Many investors are, at their core, entrepreneurs. Some saw 2023 as a catalyst to launch their own firms rather than compete in an overcrowded system.
• Deal flow freeze: A risk-off dealmaking environment left many VCs unable to deploy capital, grow or build their track records, leading to frustration and career stagnation.
• The mega-firm misfit: Large firms often have hierarchies that might stifle rising stars, pushing ambitious partners to carve their paths. Meanwhile, the industry鈥檚 shift toward asset management (and away from high-risk, high-reward investing) deepened doubts about staying.
• Burnout and toxicity: Talk of toxic leadership and unhealthy work environments had long existed, but 2023 amplified these frustrations. Some couldn鈥檛 ignore internal conflicts and personal challenges anymore.
• Shifting career lanes: Not all VCs fully appreciated their roles. Many started exploring complementary paths, often eyeing operational roles where they could make a more tangible impact.
• Fundraising crunch: Raising capital became an uphill battle as LPs pulled back. With fewer opportunities to grow within, some reconsidered their long-term trajectories.
• AI disruption: The rapid ascent of AI forced firms to reassess their positioning, while some investors jumped ship to chase AI-driven opportunities that their firms weren鈥檛 ready 鈥� or willing 鈥� to embrace.
• The generational shift: For veteran investors, this downturn became a moment of reflection. Some saw it as a natural exit point rather than riding out another decade-plus cycle.

Despite hopes for a rebound, the venture market didn鈥檛 reignite in 2024. Recovery was sluggish, and momentum was weak. But one shift was impossible to ignore: VC talent was on the move. What once simmered in the background was now front and center, reshaping the industry in real-time.

The talent movement snapshot

Career moves, like life, aren鈥檛 linear. Many of the shifts we saw in the past few quarters might have been brewing for months or even years, and we may never know the real reasons behind every move.

A few notable recent VC moves include of , , while returned to from , and back to .

The urge to build new firms also seemed to accelerate:

• (ex-) MarathonMP with ;
• (ex-) started work on a new fund; and
• (ex-) forged her path.

Others had to adapt. after missing its fundraising goal by 40%, laid off 16% of its investment team, and .

In Europe, Cavalry Ventures lost its third partner in 2024, while (who left in 2023) to in 2025.

Early-stage VC also saw notable moves, including (ex- 1) and (ex-) both to start new firms.

So, what about 2025?

Career-defining decisions happen in two key moments: under extreme pressure (like 2023-24) or during peak market euphoria (like 2020-21). Outside these cycles, most stay put. But the last market descent triggered a talent reshuffling that鈥檚 still unfolding.

The best part? There鈥檚 still time. This year marks an inflection point. With nine months left, the venture landscape is still in flux but far more optimistic than in 2023-24. This is a rare moment to take control, realign ambitions, reignite networks and embrace reinvention. One thing is clear: The hunger for transformation has never been stronger.

This year will be defined by bold pivots and quiet recalibrations. Some will take the leap, others will strategically position themselves for moves in the coming quarters and years.

And for junior and mid-level VC talent? The opportunity is even bigger. With pressure easing and partner-level transitions reshaping firms, hiring is regaining focus. Now is the time to step up, claim new roles and make bold career moves.

One thing is undeniable 鈥� venture talent is on the move. Are you ready to make yours?

is the creator of , a quarterly insights project known for its 鈥淰enture Knowledge Alpha鈥� tagline. His investment expertise goes beyond venture, spanning real estate, renewables, infrastructure and equities. As the host of , he explores niche venture topics with founders, VCs and LPs, bringing fresh perspectives to the industry. Yadav has hands-on experience in tech, sales and product roles, and combines investment acumen with real-world operational and tech knowledge.

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, an employee experience platform powered by (you guessed it) AI, announced on Tuesday it raised $70 million in Series D funding. It really wants you to use theirs.

The recent round was led by with participation from existing venture investor and newcomers and . This brings total funding to $131 million.

We shouldn鈥檛 be surprised that an intranet platform has been gaining steam. The appetite for platforms like Simpplr has remained resilient during the pandemic. In 2022, startups in the space raised over $2.4 billion, just $500 million less than it did the previous year when funding in tech was plentiful. You rarely see that kind of consistency in venture dollars between 2021 and 2022.

Keeping remote workers connected

Simpplr operates as a company intranet where employees can create profiles, access the employee handbook and find company resources. Employers can use it to update their travel expense policy, build social hubs for specific teams or deploy surveys.听

The company uses its platform, which looks like a more aesthetic intranet met with the social collaboration of , to develop a constant stream of AI-powered insights that 鈥渞eads between the lines of employee responses,鈥� according to the website. Through user habits and company sentiment surveys, the platform helps employers understand if employees are paying attention to new updates and how they feel about them.

This, perhaps, is a necessary tool for employers in a remote work environment. With employees scattered across the country (or sometimes the globe), companies are looking for ways to engage workers in order to retain them and keep them productive.听

鈥淭he employee experience continues to be a major focus for employees and employers alike,鈥� , a partner at Sapphire Ventures and Simpplr board member, said in a statement. 鈥淎 key pillar of a positive employee experience is engagement.鈥�

Simpplr鈥檚 $70 million fundraising round is the third largest in this space so far. , a human resource management platform, raised $500 million in Series E funding back in March. , an employee benefits management startup, raised $100 million back in April.

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