In today’s competitive business environment, venture capitalists need to think beyond just the money when making decisions about which companies to invest in. One of the most overlooked aspects of an investment deal is HR  – and that can be a costly mistake.  



You’ve invested and you want to see it pay off. Without the right team and processes in place, how can the new company you’ve put an influx of capital into survive to see long-term success?  


To have a good business, you need a great team! That’s why human resources play an integral role in any company’s future growth, from compliance with state and federal regulations to employee retention and motivation. By leveraging PEO services (Professional Employer Organizations) venture capitalists can ensure a solid foundation for their investments.  


Here’s what venture capital-backed clients have shared with us:  


  • PEO services allow VCs to maximize the value of their investments.  
  • Investing in HR is critical to lay down strong foundations that can set business ventures up for success as they attract top local talent.  
  • PEOs like Vested HR keep businesses compliant with all regulatory requirements. Saving time on costly audits and potential penalties.  
  • PEOs have access to better insurance plans at lower rates so employers can save money while offering competitive benefits packages that help attract top talent. This means your investment can go further to help the business in other ways. 
  • Everything is trackable! Thanks to our technology, you can easily keep a watch on how your investment is really performing from a people perspective.  

people in meeting-Vested HR 

Why Venture Capitalists Shouldn’t Overlook HR  


For venture capitalists, investing in HR is critical for helping them lay down strong foundations that can set their business ventures up for success. It’s not only important to have experienced managers on board who understand what talent to look out for; but also how to craft engaging job descriptions, create training programs and develop a comprehensive employee benefits package.  


All these elements play pivotal roles in attracting top talent and building a successful team from the ground up — something essential for any budding business. 


Investment in HR should be a priority for venture capitalists, as it has the potential to improve both bottom-line performance and culture. 


By having an effective HR structure in place from the start, venture capitalists are more likely to see their investments pay off over time. Additionally, they will be able to identify any potential pitfalls before they become costly mistakes.  


Having access to experienced HR professionals like our team at Vested HR also allows venture capitalists to manage issues with employees quickly and efficiently rather than wasting valuable resources on litigation or delays due to a lack of knowledge or experience. 



The Importance of PEO Services for Venture Capitalists  


Venture capitalists are known for taking risks and investing in promising businesses, but oftentimes these investments fail to include HR services as part of the deal. This oversight can be costly and detrimental to a business’s long-term success. PEOs are an invaluable resource for VCs when it comes to utilizing human resources effectively. 



The utilization of PEO services is essential to 

 maximize the value of any venture capital investment 


Investing in HR is investing in the future of a company; by utilizing PEO services venture capitalists can rest assured that their investments will continue to grow over time due to the support provided by these organizations. 


PEO services like Vested HR offer comprehensive solutions for: 



By outsourcing these tasks, venture capitalists can focus time on growing their portfolio without sacrificing quality or efficiency when it comes to managing HR needs for each new business partner.  Furthermore, PEOs have access to better insurance plans at lower rates so employers can save money while offering competitive benefits packages that help attract top talent. 


And don’t worry, when you work with Vested HR, you still retain and manage your employees, we’re just here to handle all the HR administration along the way. Contact us for an evaluation today!  

business meeting-Vested HR  

The Benefits of Working with a PEO  


 Venture capitalists can enjoy several benefits when working with a PEO like Vested HR including:  


Accelerating Startup Growth 


PEOs can help ventures accelerate their growth in two ways: 


  • PEOs help free up the time investment that startups spend dealing with non-core business activities so they can increase productivity and generate revenue more quickly.  
  • PEOs have access to high-level employee benefits which helps to attract and retain top talent to VC investment companies. Talented employees effectively and quickly drive the success of a venture capitalist’s investment.  



Working with a PEO is a great way to hit the  

ground running and keep an eye on your investment.  



In addition, PEOS can handle employee recruiting and onboarding in accordance with all labor laws to reduce a startup’s risk.  


Cost Reduction in Startup Management 


A PEO can help venture capitalists reduce their costs in the following areas: 


  • PEOs can purchase health insurance and other employee benefits at a lower cost. These savings are passed on to the companies they serve as an additional incentive to them.  



Regulatory Compliance 


Let’s face it, more often than not, startup management teams are not necessarily experts in HR, labor laws, and insurance compliance. On the other hand, PEOs like Vested HR are experts in these areas.  


One of the first things we will do when partnering with a VC’s company, after setting up payroll, is to review and revise their employee handbook.  


These revisions ensure that the companies we work with are compliant with all current labor laws, which reduces the chances of incurring fines as well as the risk of lawsuits.  


Remember, a PEO will not eliminate a company’s risk, but it can dramatically reduce it!  

vested HR team 

Learn More > When is the Right Time to Hire a PEO?  


Work with Vested HR  


A main takeaway: HR should be a priority for venture capitalists when investing in a business. 


This is a key part of any deal. Companies that invest in proper HR personnel and practices tend to be more efficient and profitable than those that neglect this aspect of their business. By taking this into account, venture capitalists can make informed decisions about the companies they decide to fund.  


Choose Vested HR as your PEO partner behind the scenes. We are in(Vested) in your success and are ready to help you grow! We’re experienced with venture-backed businesses nationwide and are here to help you. Contact our team for an evaluation today!