Guide
Hiring engineers before or after your raise
Money questions in our calls were almost never about price. They were about timing: add engineers before the round closes, or wait?
By the Lyra Capital team · · 3 min read
The question behind the question
Founders asked whether costs could wait until after fundraising, whether full-time engineers were affordable before the raise, and whether hiring could wait for a funding milestone. Underneath all three: will engineering spend now make the round more likely?
When to add capacity before the raise
- There is one milestone that changes the round: a working demo, a pilot live with a customer, a key integration.
- You can define it well enough to ship in weeks, not months.
- Your runway covers the sprint and the raise, with margin.
Keep it bounded: one senior engineer, one milestone, a fixed review point. The goal is evidence for the round, not a bigger team.
When to wait
- The round will change what you build: a new market, a new product line, a new technical leader.
- You can't name the milestone yet.
- The need is general, more engineering, rather than a specific piece of work.
One founder decided to wait until funding made the need specific. That's often right. Capacity bought for a vague plan gets spent on a vague plan.
When a new CTO is starting
Teams with an incoming CTO asked how new engineers would fit the delivery rhythm. Let the CTO set the roadmap and review process first, even if that takes a week, then add capacity into it. Short-term cover for a gap is fine if it's scoped to work the new CTO won't redo.
Keep the spend predictable
- Agree the scope of the first sprint and a capacity review at the end of it.
- Pre-approve extra costs such as tools, API usage and cloud spend, so nothing surprises you.
- Reassess hours after the first few weeks and scale up or down from evidence.
- Track what shipped against the milestone every week.
If direction is still moving, a part-time or short first engagement is a fair start. More in engineering capacity before your founding engineer.
Questions founders ask
Should I hire engineers before raising a seed round?
Only for a bounded sprint toward one milestone that makes the raise more likely, with runway to spare. Otherwise wait until the round makes the need specific.
Can I start with part-time engineering before the raise?
Yes. Part-time or short engagements while direction is moving are common. Reassess after the first few weeks.
How do I avoid surprise engineering costs?
Pre-approve categories like tools, API and cloud spend, and review capacity after the first sprint.
Based on Granola notes from 46 calls Nam Dao and the Lyra team held with founders about hiring engineers, 6 July to 7 November 2026. Names, companies and figures are left out. AI helped pull the questions from the notes, and each one was checked against its note. Facts about Lyra engineers are as published on lyratechnologies.com.au.