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The incentives at rentec favor low employee counts. The main fund is both limited to insiders and limited in total capital, so every new hire is judged by how m
by mgfist 2y ago
The incentives at rentec favor low employee counts. The main fund is both limited to insiders and limited in total capital, so every new hire is judged by how much they can improve returns, if they cost more than they improve, than they're a pure net negative.
This is different from most orgs who can grow revenue through expansion of some sort, in which case the incentive often favors adding new employees. Not to mention the tendency for people in tech to be evaluated by how many people are in their org, further incentivizing adding headcount to signify your importance.