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In the competitive world of startups, assembling the right team can make or break your mission. Brian Armstrong, the co-founder and CEO of Coinbase, shares powerful insights into what separates average hiring practices from those that truly drive success. His advice? Don't just hire fast—hire smart.
Beyond “No Negatives”: The “Hell Yes” Standard
Armstrong believes many startups make the mistake of hiring too quickly, often settling for candidates who simply check the basic boxes. He argues for a higher standard—one that elicits a “hell yes” reaction. Ask yourself: Does this candidate bring energy, innovation, and a skill I don’t possess? If the answer isn’t a resounding yes, it’s better to wait.
Take Coinbase’s early days as an example. Instead of rushing to hire, the team waited for individuals who not only had the skills but also elevated the energy of those around them.
The Trouble with Interviews
Interviews are tricky. Armstrong points out that they are a low-signal tool for evaluating talent. Some candidates excel in interviews, but it doesn’t always translate into real-world performance. Only about 5% of people can reliably assess candidates in a single sitting.
So what’s the alternative? Armstrong suggests relying on references or testing candidates in action. At Coinbase, new hires often worked on short-term projects before being brought on full-time, providing a real test of their capabilities.
Work Trials: The Ultimate Test
For candidates who could spare the time, Coinbase offered a chance to “try before you buy.” These week-long or two-week trials revealed whether someone could deliver meaningful results.
Armstrong’s method is simple:
Did they produce valuable work?
Did their contributions move the mission forward without requiring constant oversight?
If the answer was yes, they earned their place. If not, it was better to part ways early.
Shared Values Create Alignment
A team isn’t just about individual brilliance—it’s about alignment toward a shared mission. Armstrong emphasizes the importance of cultural fit and shared values. At Coinbase, aligning personal values with the company’s ambitious mission ensured everyone was rowing in the same direction.
The Takeaway: Build Deliberately
Armstrong’s approach teaches an important lesson: hiring isn’t a numbers game. It’s about building a team of extraordinary people who can propel your mission forward. Assembling this team takes time, intentionality, and a willingness to say no until you find the perfect fit.
By prioritizing cultural alignment, testing candidates in real-world scenarios, and maintaining high standards, you’ll create a company capable of achieving extraordinary things. In hiring, as in all things, patience truly pays off.
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