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Why managing people and risk is key to a tech company’s success

During London Tech Week 2025, we discussed the critical role of effective people and risk management in transforming tech companies into successful companies throughout their lifecycle stages.

14/07/2025 · 5 minute read

During London Tech Week 2025, we discussed the critical role of effective people and risk management in transforming tech companies into successful organisations throughout their lifecycle stages. Contact our experts to discuss how they can help support your business's future development.

Building a tech company can be a daunting endeavour. Transforming an idea into a successful business with a sought-after product and a motivated team requires ambition and a shared sense of energy and purpose.

During London Tech Week 2025, speakers from Marsh McLennan led an engaging discussion with founders, practitioners, and stakeholders, exploring the challenges faced at each stage of a tech company’s lifecycle. The Marsh McLennan speakers highlighted a common factor among successful tech companies: the effective management of people and risk. These two elements are linked; having the right talent in the right roles at the right time can elevate a company from being a contender to a leader.

Early stage (pre-seed, seed, and Series A funding)

Audience responses to “What is your understanding of the insurance compliance requirements for early-stage startups”

In the early stages, having the right people is often more important than the idea or product itself. While concepts can be refined as the business evolves, it is the founders’ sense of purpose and team that are likely to drive the company toward success.

A poll of entrepreneurs in attendance revealed that “getting the first three hires right,” followed by “team dynamics” and “passion,” are the most pressing people-related issues for tech companies.

The culture of a fledgling company is often “more caught than taught,” with employees absorbing the vision and values through the founder’s actions. Therefore, hiring the right individuals is crucial.

As the small team works to develop a proof of concept and secure additional funding, risk and insurance decisions may focus more on immediate needs rather than long-term protection. Notably, two-thirds of tech company owners in the audience admitted to having a “poor” understanding of their insurance requirements at this stage.

While maintaining a dynamic spirit, it is essential to cover the legally required basics such as protecting the mental health of the team and enrolling employees in a pension scheme. Additionally, key person coverage is advisable to safeguard the company against financial setbacks should a founder become seriously ill or pass away.

We were delighted to sponsor London Tech Week 2025; here’s some footage we recorded from the event.

Mid stage (Series B and C fundraising)

Audience responses to “Rank your top 3 priorities for mid-stage tech companies”

As a startup begins to scale, the focus may shift to accelerating growth. Entrepreneurs in the audience identified the leadership team’s ability to mature, execute at scale, and establish a solid team structure as their top priorities.

At this stage, founders may start to recognise that their people are both their greatest asset and their most significant risk. While having the right talent can fuel expansion, growth can stall if key hires are mishandled or if essential team members depart.

Transitioning from everyone doing everything at the start, the company may recruit specialists to facilitate faster growth through a strategic go-to-market plan that includes new products and services.

As the business expands, self-doubt may arise. Founders may question whether they are making the right decisions regarding team satisfaction and retention. They may grapple with the balance of hiring enough staff to support growth while avoiding the pitfalls of overstaffing.

Founders may also begin to understand the importance of risk management. They may contemplate who “owns” risk within the organisation and how to manage it effectively. As the company grows, its approach to risk and insurance may lag behind, making it important to address what is referred to as the risk maturity gap. Investors in mid-funding rounds may view a tech firm’s risk management strategy as a litmus test for its readiness to scale.

Exit stage (Series D onwards, sale, or public listing)

Audience responses to “What key people concerns do you think arise during the exit process”

As the focus shifts to preparing the business for sale or public listing, founders’ concerns may evolve. They may worry about the potential loss of the company they built, the stagnation of the leadership team, and the gradual erosion of the culture that initially propelled their success.

At this stage, it is important to demonstrate to potential acquirors or investors that the company has the skills and structure necessary to manage a high-growth, high-profile tech firm. The company is likely to be very different from the one that started with a few individuals and may request support on how to enhance employee benefits and maintain a positive culture.

As the company approaches the end of their journey, the stakes are often higher than ever. A cyberattack could damage the company’s reputation at a critical moment, and an IPO could introduce new risks for executives and directors.

In this final stage, the focus may be on maturity — ensuring the company is ready to transition to a public entity. Alongside new risks associated with an IPO process, there are increased risk management and governance obligations that must be addressed in advance. Being IPO-ready is the key objective.

Marsh McLennan offers extensive expertise in supporting companies on their approach to risk management, insurance, workforce strategy, and employee well-being. Our teams understand that effective risk management is not just about mitigating potential threats; it is about enabling growth and innovation. 

If you would like to discuss any of the topics raised in this article further, please contact us.

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Our people

Carrick Lambert

Carrick Lambert

Marsh UK Industries - Technology Industry Leader

  • United Kingdom

Sam Tiltman

Sam Tiltman

Marsh UK Industries - Sharing Economy & Mobility Industries Leader

  • United Kingdom

Joe Marron

Joe Marron

Client Director & Technology Industry Vertical Lead, Mercer Marsh Benefits

  • United Kingdom

Gaurav Dutt

Gaurav Dutt

UK & European Consulting Leader, Technology and Life Science Sectors, Mercer

  • United Kingdom

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