Dover, NH - October 11, 2006: A few years ago, start-ups with the latest and greatest tech idea could court venture capitalists (VCs). “Today, start-ups are finding it harder to locate interested VCs. That's because VCs are proceeding with caution,” according to Delise West, Founder and President of Human Resource Partners located in Dover, New Hampshire.
“Companies that are proactive about human resources related factors, including compliance issues and infrastructure, make investing in that particular company more appealing to a VC because the VC knows there will be fewer HR-related surprises,” added West.
Mike Gadoury, Founder and CEO of Bradford Networks whose corporate headquarters are located in Concord, New Hampshire, recently announced that the company had secured $2 million in Series A funding.
“Bringing in an HR consultant was part of our strategy from the beginning, said Gadoury. “Our VC was in full agreement with this idea.” Bradford Networks brought West in to meet with their VC to better understand their HR-related expectations.
West was then retained to recruit new employees and to build infrastructure, including developing a new employee orientation process, company handbook, etc. West goes on site a few times a month as well in order to make herself available to employees and managers for any day-to-day needs.
“Our company has realized a significant cost savings by retaining Human Resource Partners over hiring a full-time HR director,” said Gadoury. We filled a void of expertise that we were lacking as software engineers.”
West suggests retaining the services of an HR consultant six months prior to approaching VCs in order to avoid compliance issues. Development of a company handbook and addressing any potential human resources-related compliance issues are among the suggestions West offers companies considering approaching VCs for funding. “Having the human resources infrastructure in place prior to securing funding will demonstrate to an investor that the management team is proactive and will enhance the company’s valuation,” said West.
Human Resource Partners provides customized, fully outsourced HR solutions for small businesses and start-ups including compliance, hiring and retention services. For more information on Human Resource Partners, visit www.h-rpartners.com.
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