3 Takeaways:
- – Demand for strategic AI roles, like Head of AI, is growing across VC-backed companies.
- – Economic pressures are pushing VC-backed companies to adopt leaner teams and agile leadership models.
- – Hybrid work models remain critical for attracting top executive talent.
The Future of Tech Leadership report by Riviera Partners reveals pivotal trends reshaping executive hiring. From the surge in AI-centric roles to the pressures of economic uncertainty, these insights are essential for venture capital-backed companies looking to attract top leadership talent.
In this article, executive search experts Eoin O’Toole and Sam Wilkins from Riviera Partners’ Venture Practice share their perspectives on how these trends impact the leadership landscape in VC-backed firms.
The Rise of AI Roles in Tech Leadership
With AI’s influence growing in the tech industry, 75% of companies now prioritize AI-driven strategies. This trend has led to the emergence of roles like VP of AI and Head of AI, focusing more on strategic integration than pure technical innovation.
Eoin O’Toole, Managing Partner, Venture: “When cloud computing became popular, everyone branded themselves as a cloud company, but that soon became just part of how businesses operated. We see the same happening with AI. Only a small number of companies truly need top-tier AI talent for building complex models. Instead, we’re seeing roles like VP of AI or Head of AI emerging. These leaders are more often strategists than technologists, focusing on how AI fits into the product roadmap and ensuring sustainability.”
Sam Wilkins, Partner, Venture Practice: “For AI-native companies, business is booming as the world plays with LLMs and there is a battle brewing for the best executives across product, engineering, and go-to-market. Non-AI-native companies are looking to bring in technical leaders to integrate AI into product to reinvigorate growth.”
Essential Leadership Qualities for AI-Driven Companies
Leadership in AI requires more than technical expertise. Executives must be adaptable, with a proven track record of integrating new technologies effectively. For VC-backed firms, balancing culture fit with high-tech skill sets is crucial.
Eoin: “Adaptability and tech-savviness are essential. VC-backed leaders need to critically evaluate AI’s potential value for their company. It’s not just about technical expertise but having a track record of effectively integrating new technologies. Flexibility and strategic thinking are key.”
Sam: “Adding to that, qualities that fit your company culture and stage are still crucial. AI has accelerated the pace of decision-making and product development, and companies are moving faster than ever. Skills vary depending on the problem being solved and the company’s differentiation, whether through technology, data, or user experience.”
Shifting Hiring Strategies in Economic Uncertainty
VC-backed companies face economic pressures to optimize resources and operate lean. The trend shows a reduction in middle management and a greater emphasis on hands-on, senior leadership roles to maximize efficiency.
Eoin: “There’s immense pressure to ‘do more with less.’ VC-backed companies are strategically hiring CTOs and reducing middle management to ensure a lean, agile approach to growth, which is especially critical for companies navigating the current VC funding landscape.”
Sam: “Despite talent layoffs across the industry, top-tier talent remains scarce and in high demand. Firms should recognize the need for competitive compensation to attract and retain this talent, especially in technical and leadership roles.”
Hybrid Work Models and Location Strategies for Top Talent
The shift toward hybrid work continues to redefine expectations around in-office presence, with VC-backed companies finding that a three-day in-office model is increasingly common.
Eoin: “Candidates have zero appetite to be in the office five days a week. Anecdotally, companies that we’re speaking to now are settling on about three days a week in office. There’s the old saying that talent is equally distributed, opportunity is not. That got turned on its head during COVID, but is coming back now.”
Sam: “A hybrid work model allows companies to tap into the best talent in key tech locations while accommodating the demand for flexibility. We’re seeing this model become a standard as firms recognize that top talent values both the autonomy of remote work and the collaborative environment of an office.”
Changing CEO Expectations at High-Growth Startups
With VC-backed companies achieving early revenue milestones, expectations for CEOs have shifted.
Eoin: “Six or seven years ago, only 20% of seed-stage companies were generating revenue. Today, over 80% of them produce revenue by the seed stage, typically around $2 million. This change is partly driven by VCs’ focus on profitability, creating a need for CEOs who can showcase early results.”
Sam: “The ability to generate revenue from even a primitive AI based product is spiking right now as customers experiment with various productivity apps and infrastructure tooling. The same broad expectations for CEOs still apply though – they are the custodians of the vision of their company, client ambassador, recruiter of great exec team and culture carrier.”
Growing Focus on Sales and Marketing Roles
VC-backed companies are increasingly prioritizing sales and marketing roles, driven by the need to scale revenue quickly and leverage AI in these areas.
Eoin: “This increased focus is likely driven by companies looking to increase efficiency in sales and marketing through AI, which in turn is driving demand for leaders who can quickly establish repeatable revenue streams.”
Sam: “There’s many Unicorns who raised a lot of capital to build product for markets that are becoming more competitive to serve and in parallel, shrinking as everyone tightens their belts. That means you need to focus on selling what you have rather than building more, especially if you are perceived as a ‘nice to have’ rather than ‘must have’ offering.”
Balancing Rapid Scaling with Strategic Hiring
In high-growth environments, sustainable scaling requires leaders who are adaptable, tech-focused, and data-driven.
Eoin: “Scaling sustainably is crucial, especially with limited resources. Companies are looking for executives who can operate effectively with lean teams and drive growth while staying aligned with the company’s strategic objectives.”
Balancing Performance Demands and Team Morale
Eoin: “It’s frankly a balance that’s not working really well right now. I was speaking to four candidates this week that are being asked to do so much with huge expectations and no investment in budget in growing their teams to help achieve that. They’re getting results, but they’re burning out. And so companies need to be careful managing these employees that are delivering these results.”
Evaluating the Candidate Pool
Eoin: “We’re seeing a much more diligent candidate population these days. By and large, they want to understand the company’s cap table. They want to understand why a company’s projections are the way they are. They want to understand funding runway. It’s just a more sophisticated, deliberate desire to understand their potential workplace beyond the traditional, broader brush strokes. And, perhaps, most importantly, candidates want to understand how the role will specifically impact the bigger picture and longer-term goals of the company.”
Connect with Eoin O’Toole and Sam Wilkins on LinkedIn.
Explore more Future of Tech Leadership insights
