• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

Hot tech startups get as many perks as they give

By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
October 17, 2014, 12:07 PM ET
Business people working together in office
Business people working together in officeJose Luis Pelaez—Getty Images/Blend Images

Startups are known for their lavish and often ridiculous perks, from acupuncture to personal chefs, “rock rooms” to ball pits, even assistants who wait for the cable guy on your behalf. At one point, the New York e-commerce startup Fab.com held weekly raffles to give employees $500 in cash. Evernote, the productivity software startup in Redwood City, Calif., pays employees $1,000 just to use their allotted vacation days.

It’s all in the name of employee recruitment—and, once they’re hired, employee retention. Startups know that they compete for talent with the big, public technology companies that can offer even sweeter benefits packages, including liquid stock options. This week, Apple (AAPL) and Facebook (FB) announced that they would pay for female employees to freeze their eggs.

But startup companies are also the beneficiaries of perks, often in the form of discounts from service providers, larger technology companies—even other startups. HubSpot, a marketing software company in Cambridge, Mass., offers 90% off its very expensive software for one year to early-stage startups with less than $1 million in funding and revenue. Participants in the 500 Startups accelerator have access to 250 different perks, including a year of free email distribution from SendGrid, a free business credit report consultation from Dun and Bradstreet, and cheaper snacks for the office.

Unlike regular businesses, startups are geared for hyper-growth. A tiny client without money to spend on services can quickly turn into a massive one that is flush with cash. (Consider Uber, which reportedly brought in $1 billion in car service bookings after just three years in business.)

Beyond snagging high-growth clients, the service providers are betting that if startups use their services, they will trickle up to larger companies. “It’s about being able to say, ‘We’re a company that serves startups,’” says Elli Sharef, co-founder of HireArt, a recruiting services platform. “They have cachet, as in, whatever the newest startups are using, it must be good.”

HireArt, itself a startup, has benefitted from many perks, including credits for cloud hosting from Amazon Web Services, $50,000 of free cloud services time through Heroku, and a steep discount from the law firm Wilmer Hale, effective until the company raises a Series A round of funding.

Now, HireArt is offering its own perks to startups. The company’s recruitment platform costs $995 per month per position or more, which is too pricey for a seed-stage startup. “Most five-person startups are scrambling to recruit with D.I.Y. solutions like posting on AngelList and CraigsList,” she says. But many of HireArt’s job candidates want to work at early stage startups, so Sharef decided to offer free services to startups with less than $2 million in funding that have graduated from a startup accelerator. (The accelerators serve as a vetting mechanism.)

It’s amusing to see one venture-backed startup giving its services away to other venture-backed startups, but that’s part of what makes a startup ecosystem tick. Sharef notes HireArt couldn’t afford such an up-front marketing expense if it weren’t backed by $2.4 million in venture funding.

“It’s like this big pile of VC money moves from one company to another,” she says. Since launching in 2012, HireArt has accumulated about 500 clients, most of which are venture-funded. Around 15% have 100 to 200 employees. With any luck (and maybe recruitment fees), some of those clients will turn into 500- to 1,000-person companies and some of its new seed-stage clients will turn into large, venture-backed, paying clients. And if not? Then the whole startup ecosystem might find itself in trouble.

About the Author
By Erin Griffith
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

U.S. allows Russia oil sales waiver to expire despite tight market
EnergyOil
U.S. allows Russia oil sales waiver to expire despite tight market
By Jennifer A. Dlouhy and BloombergMay 16, 2026
2 hours ago
AI poised to tilt job market leverage toward older workers
AIHiring
AI poised to tilt job market leverage toward older workers
By Victor Swezey and BloombergMay 16, 2026
2 hours ago
U.S., Iran stall on Hormuz reopening as oil supplies tighten
PoliticsIran
U.S., Iran stall on Hormuz reopening as oil supplies tighten
By Skylar Woodhouse, Jeff Mason, Arsalan Shahla and BloombergMay 16, 2026
2 hours ago
Former top Russian official admits the country is over Putin and can ‘imagine a future without him’ — even elites bail as Kremlin seizes their assets 
PoliticsRussia
Former top Russian official admits the country is over Putin and can ‘imagine a future without him’ — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
3 hours ago
Trump’s IRS suit may end with a $1.7 billion compensation fund
PoliticsDonald Trump
Trump’s IRS suit may end with a $1.7 billion compensation fund
By Zoe Tillman, Chris Strohm, Hadriana Lowenkron and BloombergMay 16, 2026
5 hours ago
World’s largest aircraft carrier returns from 11-month deployment, longest since Vietnam, after supporting Iran war and Maduro raid
PoliticsMilitary
World’s largest aircraft carrier returns from 11-month deployment, longest since Vietnam, after supporting Iran war and Maduro raid
By The Associated PressMay 16, 2026
5 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
13 hours ago
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
3 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
4 days ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
17 hours ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
13 hours ago
Current price of oil as of May 15, 2026
Personal Finance
Current price of oil as of May 15, 2026
By Joseph HostetlerMay 15, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.