Summary:
Seattle founders find hiring talent relatively easy, but specialized roles require broader searches.
Return-to-office policies are split, with some valuing in-person collaboration and others opting for remote flexibility.
Fundraising is easier for AI startups, with 58% of VC dollars going to AI in Q1 2025, while others face challenges.
Focus on growth over profitability is common post-funding, but building a profitable business is crucial for sustainability.
Key challenges include economic shifts, government policies, and the need for effective go-to-market strategies.
Inside the Minds of Seattle Startup Founders
Founders gathered at GeekWire HQ in Seattle's Fremont neighborhood for a summer deck party, sharing insights on navigating the startup landscape. Here's a deep dive into their experiences.
Founders pack the deck at GeekWire HQ. (GeekWire Photos / Kevin Lisota)
Seattle startup founders are balancing opportunities and challenges as they scale their ventures. From fundraising to hiring, here's what they had to say.
Hiring
Many founders reported no trouble finding talent in the Seattle area. Tony Small, CEO of heyLibby, emphasized, "It's just still a great area to hire people." heyLibby raised $4.5 million this year for its AI sales and receptionist software. Others highlighted leveraging networks or hiring from recent layoffs. However, filling specialized roles remains a challenge. Milton Perque, CEO of Kapta Space, noted, "That requires a relaxing of our requirements for in-office and casting a wider net nationally." Kapta Space, a radar tech startup, raised $5 million earlier this year.
Return-to-Office (RTO) Policies
Founders were divided on RTO. Some, like Peter Williams, CEO of Muir AI, stressed the importance of in-person collaboration: "Being able to get on a whiteboard whenever, or just turn around and ask somebody a question — it's a huge unlock." Muir AI raised $3.25 million in 2023. In contrast, Tony Small's team abandoned co-working due to long commutes. Anna Rodriguez, co-founder of heyLibby, added that hiring globally is a "huge advantage."
Fundraising
The funding environment is a tale of two worlds, according to David Tsai, CTO of GoodShip. It's easier for hot AI startups but harder for others. Nearly 58% of global VC dollars went to AI and machine learning startups in Q1 2025, per PitchBook. GoodShip, a freight logistics software startup that raised $25 million, found itself well-positioned to apply AI. Meanwhile, Caitlin Rollman, founder of Talvita, is bootstrapping her talent management software to avoid time-consuming fundraising.
Profitability vs. Sales
After raising $15 million in April, Taylor Halliday, co-founder of Ravenna, is focused on growth: "The focus is on proving that we are building something viable and customers are paying us. There's no pressure around profitability." Peter Williams echoed this, prioritizing business growth. Tony Small cautioned against assuming easy fundraising, emphasizing the importance of profitability to avoid running out of money.
Biggest Challenges
Founders cited the broader economy and shifting government policies as challenges. Muir AI pivoted from sustainability to cost reduction in supply chains due to the macroenvironment. Milton Perque is monitoring the Department of Defense's appetite for working with small startups like Kapta Space. Taylor Halliday is refining go-to-market messaging, while Caitlin Rollman worries about moving fast. Anna Rodriguez highlighted marketing's growing importance with AI tools, and David Tsai advised focusing on creating long-term value for customers.
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