Welcome to another Data Driven VC “Insights” episode where we curate key research on topics that really matter in startup land. Today marks a very special episode as it’s the handover from my friend and “Insights” co-author Jerome - who has not only helped launch this episode stream but also scale the newsletter over the course of almost two years from 20k to 50k+ readers - to his successor and my new co-author Lea.

From a student and early reader of DDVC with great ideas, solid research & writing skills, to a key contributor in our community, and now a leader in one of the hottest dev startups - I want to THANK YOU JEROME for your great contributions and wish you all the best for the startup ride!! I’m sure we’ll find many more ways of collaborating in the future and you will always remain a key part of our community ❤️

Before we jump into the first episode researched & co-authored by Lea on one of the most controversially discussed topics - Hiring local vs remote - we’d love to get your input to double down on what works and kill what doesn’t.

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Remote-first models seemed like the silver bullet of the last few years: unlimited talent pools, lower overhead, access anywhere. However, data from Carta and others reveal that the story is far more nuanced for startups. For founders and investors alike, the interplay of “where” and “how much” of hiring has real cost and risk implications.

Before we dive into a more detailed look, we’d like to highlight 3 key trends that emerge from the data:

Taken together, these reveal three intertwined themes: (1) Startup hiring is increasingly geographically agnostic, (2) But pay is rarely location-agnostic, and (3) The value of geographic proximity hasn’t disappeared, particularly for more complex or research-heavy roles.

Startup hiring has evolved rapidly since the remote-work boom, but not all patterns have shifted equally. Looking at what’s changed and what’s stayed the same helps founders understand where flexibility truly adds value, and where geography still holds sway.

Startups’ location and work‑mode strategies vary widely by role and context. Tech startups in particular can often decouple headcount from geography: virtually all core tech roles can be remote‑eligible. One analysis found that 100% of “computer and mathematical” occupations (e.g., engineers, data scientists) and 87% of “management” roles could be done remotely (Hsu & Tambe, 2023).

In practice, this means founders can recruit engineers and even product managers from anywhere, and can assemble leadership teams across cities or countries. However, data show more flexibility tends to be offered to experienced hires: new postings for senior‑level positions are much more likely to allow hybrid work than those for junior staff (Robert Half, 2025). For example, in mid‑2025, about 31% of new senior roles were hybrid (vs 18% of entry roles) (Robert Half, 2025).

Similarly, surveys in 2024 found ~57-60% of executives and mid‑managers had remote arrangements, compared to under half of junior employees (GWI, 2025). These patterns reflect that companies often require senior leaders to meet in person less frequently, while younger staff may prefer office time for mentoring and socializing.

Regional and sectoral context also matters. The post‑COVID era has seen startup activity decentralize: rising ventures in rural and non‑traditional hubs (Wyoming, Georgia, etc.) benefit from remote work and AI tools, as noted by recent IMF research (IMF, 2025).

Nevertheless, tech hubs still exhibit high hybrid adoption: for instance, key US tech metros (San Francisco, NYC, Seattle, Austin) each had 25-33% of new jobs advertised as hybrid in 2025 (Robert Half, 2025). This reflects both local culture and the dense talent pools in those cities. For remote roles, startups often gain “geo-arbitrage” advantages (hiring skilled talent where living costs are lower). One industry report notes startups can save 30-50% on salaries by hiring engineers from Eastern Europe or India vs Silicon Valley, without quality loss (F22LABS, 2025).

Finally, performance outcomes vary by modality and onboarding. Studies suggest that well-supported remote work can match or even exceed office productivity in many tasks (BFI, 2025). However, hybrid work models tend to strike the best balance: one analysis found hybrid teams saw no drop in output and even slightly higher performance, while also saving commuting time (HBR, 2023; Startupdaily, 2025).

The biggest performance penalties seem to come when remote work is poorly managed or unbalanced - e.g., missing onboarding, lack of collaboration tools, or uneven application by seniority. In short, for each role (from C‑suite to individual contributor), founders should assess what location and rhythm maximizes focus and collaboration. Rigorously tracking KPIs by team and geography, and iterating on policies, will help ensure the chosen work model boosts (rather than hinders) the startup’s goals.

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U.S. hiring remains flexible but domestic. In the United States, job‐seeker interest in remote roles is still near its record high (about 9-10% of Indeed searches) (Hiring Lab, 2023). However, the share of U.S. tech job postings advertising remote/hybrid work has eased, falling from a 10.3% peak in early 2022 to roughly 8.4% by mid-2023 (Hiring Lab, 2023). Much of this reflects a slowdown in hiring for traditionally remote-heavy roles (software engineering, IT, etc.). Indeed notes these fields saw postings drop ~36% year‐over‐year by mid-2023 (Hiring Lab, 2023).

Importantly, U.S. companies are still hiring largely from the domestic talent pool: data from the hiring platform Deel show that “domestic” hiring (workers in the same country as the employer) grew by 104% in 2024, compared to only 42% growth for cross-border (international) hires (Deel, 2025). In other words, even as 82% of jobs on the platform are remote, U.S. firms are favoring local or same-country candidates (Deel, 2025).

This often means hiring from within the same state or time zone when possible. Nevertheless, Americans are increasingly working for foreign tech firms: one report finds U.S. workers hired by internationally‐based companies jumped 62% in 2023 (Investors Observer, 2025), indicating that many U.S. tech professionals are taking remote jobs with overseas employers as well.

Europe’s tech sector stays hybrid and attracts global talent. Europe’s tech industry also saw a post-Covid rise in remote work that has since stabilized. Surveys suggest about 12-22% of European tech jobs are fully remote, with another ~17% hybrid. For example, a November 2024 analysis by NextLevelJobs found roughly 12.3% of EU tech-sector positions were fully remote (down from ~20% at the 2022 peak) with ~17% hybrid (NextLevelJobs EU, 2024), implying about one-third of roles remain flexible.

Across Europe the averages are similar: roughly 22% of EU tech jobs are now fully remote and 17% hybrid (NextLevelJobs EU, 2024). Again there are large country differences: the UK leads with ~35% of its tech roles fully remote, Germany about 26%, and Nordic countries often 30-40% (NextLevelJobs EU, 2024). These figures mean that roughly half of European tech jobs involve some remote work, broadly on par with U.S. levels. High tech hiring on both sides of the Atlantic remains strong. For instance, a Landing.Jobs report covering North America and Europe found IT recruitment rose ~49% in 2023 (Landing.Jobs, 2024), reflecting sustained demand for talent everywhere.

Cross-border talent flows. A key difference is that European startups are hiring more globally. Europe is now a “net beneficiary” of worldwide tech talent flows: Atomico’s 2023 State of European Tech report notes that more workers are moving to EU tech jobs than leaving. In fact, more U.S. tech professionals relocated to Europe than vice versa (State of European Tech, 2024).

Data from global hiring platforms back this up. One analysis found 43% of all cross-border tech hires in 2024 came from European countries, while North America and Asia accounted for much of the rest (Employerrecords, 2025). In practice, many U.S. and European companies recruit in Europe due to overlapping time zones and talent availability (Employerrecords, 2025). Talent can move freely within the EU, and policies (like digital-nomad visas in Portugal and Croatia) are actively attracting remote workers (NextLevelJobs EU, 2024).

Thanks to Lea Winkler for her help with this post.

Stay driven,
Andre

PS: Check out Affinity’s PE Benchmark report here