In the fast-paced world of startups, risk and innovation go hand in hand. While some startups achieve remarkable success, others inevitably face closure, pivots, or restructuring. This often leaves their employees seeking new opportunities, but many hiring managers in asset management and hedge funds approach candidates from failed startups with undue caution. There's an unspoken assumption that challenges in the startup world reflect on the candidates’ abilities, which often leads to missed opportunities to acquire skilled, adaptable talent. In larger or more established organisations, downsizing or restructuring rarely tarnishes a candidate’s reputation. So why apply a double standard to startup experience, especially given the valuable skill set these candidates bring to the table?

Let’s turn this perspective around and explore why hiring candidates from startups, including those that haven’t succeeded, can be a strong strategic decision for asset managers and hedge funds.

Candidates from the startup world tend to have resilience in spades—an invaluable trait in any industry, particularly in fast-moving financial sectors like asset management and hedge funds. Startups are a constant exercise in adaptability, where employees must adjust to evolving roles, shifting priorities, and unexpected hurdles. Working with lean teams and limited resources, startup employees become incredibly resourceful, learning to solve problems with whatever tools are available. This “do whatever it takes” mentality can bring fresh energy and ingenuity to any team, which can be particularly valuable in a high-stakes finance environment where adaptability and quick problem-solving are crucial.

Additionally, employees in startups tend to work across multiple functions, gaining a broad skill set and a unique perspective on business operations. This exposure equips them with a well-rounded understanding of how different functions connect and contribute to organisational goals, making them adaptable and effective across various roles. In the corporate setting of asset management, where teams may be large and hierarchical, startup candidates often thrive in tight-knit groups, taking ownership of their projects and embracing accountability. Startup talent tends to be highly self-motivated and results-driven, which can be especially valuable in hedge funds and asset management firms where performance is key.

Despite these clear advantages, hiring managers sometimes worry that startup candidates may not fit neatly into a more structured corporate environment. This hesitation is understandable, but startup candidates are typically highly adaptable—they’re used to switching gears quickly and can often bring a fresh, flexible approach to traditional settings. With a thorough onboarding process, they can quickly adjust to corporate workflows, and many find it refreshing to work within established processes and clear hierarchies.

Another common misconception is that candidates from startups might leave the moment they’re no longer challenged. Yes, startups are known for their dynamic environments, but that doesn’t mean their employees are inherently restless or unwilling to commit. Many candidates from startups actively seek stability, professional growth, and career development opportunities that larger organisations like asset management and hedge funds can provide. Offering engaging roles with defined growth pathways can help attract and retain startup talent for the long haul.

To help startup employees transition smoothly, it’s important to create an open, inclusive onboarding process that clarifies your organisation’s culture, objectives, and structure. This can make all the difference in helping new team members feel welcome and aligned with your goals. A thoughtful onboarding programme is a worthwhile investment—open discussions about a candidate’s background, skills, and goals allow you to harness their strengths and create a smooth transition, helping them contribute to your business’s success from the outset.

By judging candidates solely on their work environment, you risk missing out on highly resilient, resourceful, and innovative professionals. Those from startups bring a blend of tenacity, creativity, and a proactive attitude towards new challenges—qualities that fit well within the fast-moving worlds of asset management and hedge funds. Hiring with an open mind allows you to access this talent pool, fostering a team ready to adapt, innovate, and contribute to long-term growth.

Whether you’re a leading hedge fund or an asset management firm, startup talent can propel your organisation forward—as long as you’re open to seeing their full potential. Embrace the skills and insights they bring, and you’ll gain dedicated, driven professionals who can help your firm thrive in an increasingly competitive and ever-evolving financial marketplace.