FRESNOFORECLOSURE

As the startup ecosystem across Asia Pacific (APAC) and the Middle East (ME) matures, a quiet transformation is underway. Gone are the days of relentless hiring and aggressive expansion. Startup growth is being redefined by favouring resilience, capital discipline, and leaner teams over headcount-heavy strategies.

In a recent feature by e27, new data from Carta, a global leader in private market infrastructure, reveals a stark pivot in how startups in the region build their businesses. Between 2019 and 2022, APAC and ME startups pursued expansion with remarkable energy: hiring soared by 423 per cent, significantly outpacing the 115 per cent rise in departures. But the post-pandemic funding correction and shifting investor expectations have ushered in a more cautious era.

In 2024, hiring activity remains 131 per cent higher than in 2019, indicating that growth has not stopped, but the context has changed. Over the same period, departures due to resignations or layoffs have spiked by more than 400 per cent. The ratio of hires to departures has contracted from 10:1 during 2021–2022’s boom years to just 2:1 this year.

The message is clear: startup leaders make strategic decisions to future-proof their businesses.

This recalibration echoes global shifts in the startup landscape. Startups are responding not only to volatile markets but also to investor calls for operational efficiency.

Also Read: Levelling the playing field: How AI can transform SME hiring

As a result, Carta’s platform data highlights a more disciplined approach to workforce planning and equity management in APAC and ME.

Interestingly, startups in this region still run larger teams than their counterparts in the US. At Series B, the median headcount in APAC and ME is 53, nearly double that of a typical US company at the same stage. Even at earlier phases, regional startups tend to be more people-intensive: pre-seed teams average four employees, seed-stage firms have eight, and those at Series C or beyond have a median of 81.

Several factors may explain this. US startups might adopt automation and AI faster, allowing them to scale with fewer employees. Meanwhile, APAC and ME companies may still rely more heavily on manual processes or invest earlier in customer service, local sales, and support teams to capture fragmented regional markets.

Still, this people-first approach is balanced by a more prudent attitude towards compensation and equity distribution. Carta’s insights show that startups now focus on standardised equity structures and rationalising share allocations. This marks a clear departure from the “growth-at-all-costs” mindset of the past.

These changes underscore a broader cultural shift. Founders and early employees are navigating a world where equity remains a powerful incentive, but one that must be wielded with precision. Startup growth is no longer just about how fast a company can expand. It is about how smartly it can grow, and how well it can sustain itself over time.

Also Read: Hiring in the fast lane: The startup revolution in talent acquisition

Carta’s upcoming keynote at Future Stage at Echelon Singapore 2025 on Wednesday, June 11, at Suntec Singapore, offers a rare opportunity for those seeking to understand these shifts in real time.

Titled “Rethinking Capital, Hiring and Equity for Resilient Startup Growth”, the session will be led by Charlie Pennington, Head of GTM, APAC & MENA, Corporations at Carta. Expect valuable insights from a platform that works with over 40,000 companies globally and manages nearly US$130 billion in assets.

Whether you are a founder recalibrating your hiring strategy, an investor looking to spot sustainable bets, or an operator rethinking equity distribution, this keynote will unpack the numbers—and the narratives—behind today’s startup growth story.

Do not miss out. Join us and gain first-hand insights into building for long-term startup success.

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Image Credit: Van Tay Media on Unsplash

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