In the race for market leadership, the company with the best team wins. Your portfolio companies are not just competing on product; they are competing for a very small pool of elite AI and machine learning professionals. When giants like Google and Meta can offer massive compensation packages, how can a startup stand out? The answer lies in having a competitive edge in the talent market. A specialized AI staffing partner for VC firms provides this advantage. They give your companies access to a hidden network of passive candidates—the top performers who aren't actively looking but are open to the right opportunity—ensuring you can build world-class teams without getting into a bidding war you can't win.
Key Takeaways
- Specialization is non-negotiable for AI talent: Generalist recruiters lack the technical depth and speed required for AI roles, creating a hiring bottleneck. A specialized partner understands the nuances of the field, ensuring your portfolio companies connect with accurately vetted candidates faster.
- Evaluate partners on tech, network, and flexibility: The right firm uses modern technology to source talent efficiently, has a deep network of passive candidates you can't find elsewhere, and offers flexible partnership models that can scale with your portfolio's changing needs.
- Measure success by growth, not just placements: The true ROI of a great staffing partner is reflected in key business metrics. Track the reduction in time-to-hire, the long-term retention of new employees, and your portfolio companies' accelerated ability to innovate and hit their goals.
What is an AI Staffing Partner (And Why Should VCs Care)?
Think of an AI staffing partner as a specialized extension of your team, one that lives and breathes the world of artificial intelligence and machine learning. Unlike generalist recruiters, these firms focus exclusively on sourcing the niche talent that builds, trains, and deploys complex AI systems. For venture capitalists, the success of a portfolio company often hinges on its ability to attract and retain this exact type of talent. When your investment is backing a startup that needs to scale its tech team yesterday, a slow hiring process isn't just an inconvenience—it's a direct threat to growth and your return on investment.
An AI staffing partner does more than just scan resumes. They understand the subtle but critical differences between a Data Scientist and an AI Engineer. They have established networks of passive candidates who aren't actively looking but are open to the right opportunity. By partnering with a specialist, you give your portfolio companies a competitive edge in a fiercely contested talent market. It means faster hires, better-qualified candidates, and technical teams built to innovate and execute, which is exactly what you need to see in the companies you back.
How Tech Recruiting Has Changed
Not too long ago, tech recruiting was a numbers game based on keyword matching and sifting through mountains of resumes. Recruiters relied on manual searches and broad outreach, hoping to find a needle in a haystack. That approach simply doesn't work for the highly specialized roles in AI. The field is moving too fast, and the required skills are too specific. Today’s recruiting landscape demands a more intelligent and targeted strategy. Modern hiring solutions combine advanced technology with deep industry knowledge to pinpoint the right candidates with precision, moving beyond simple keyword searches to understand the context of a candidate's experience.
How AI is Changing the Hiring Game
Specialized AI recruiting firms are changing the game by using technology to their advantage. They leverage AI-powered tools to streamline the search process, identifying top talent much faster than traditional methods allow. But it's their deep understanding of the industry that truly sets them apart. These firms know what it takes to succeed in roles like AI Engineering or MLOps. They conduct thorough technical screenings to validate skills and ensure candidates not only have the right qualifications on paper but can also solve real-world problems. This leads to higher-quality hires who are a better fit for the company culture and are more likely to stay long-term.
Why Human Expertise Still Matters
While technology makes the initial search more efficient, it can’t replace the nuance of human connection. The best AI staffing partners know that building relationships is key. A great recruiter acts as an advocate for both the company and the candidate, ensuring the opportunity is the right fit for everyone. They manage expectations, provide transparent communication, and create a smooth, positive experience from the first conversation to the final offer. It’s this human touch that turns a list of qualified candidates into a successful hire. The team of experts at a staffing partner provides the critical judgment and insight that AI tools alone cannot.
What Makes a Great AI Staffing Partner?
Finding the right AI staffing partner is about more than just filling seats. It’s about finding a firm that acts as a true extension of your team, understanding the unique pressures and opportunities within a venture-backed portfolio. The best partners combine deep industry knowledge with powerful technology and a human-centric approach. They don’t just send you resumes; they deliver vetted, high-impact talent ready to help your companies scale. When you’re evaluating potential partners, look for these key qualities.
Smarter Tech for Faster Hiring
A top-tier AI staffing partner uses sophisticated technology to accelerate the hiring process without sacrificing quality. They leverage AI-powered tools that go beyond simple keyword matching to analyze hundreds of data points on each candidate, uncovering hidden talent that traditional methods might miss. This allows them to quickly build a shortlist of highly qualified individuals who align with your portfolio company's specific technical needs and long-term goals. By combining experienced recruiters with advanced software, they can significantly shorten the time-to-hire, giving your companies a critical competitive edge in the race for top AI engineering talent.
Vetting for True Technical Skill
In the world of AI and machine learning, a resume can only tell you so much. A great staffing partner conducts a thorough and multi-faceted vetting process to confirm a candidate’s technical abilities. This means going beyond self-reported skills to include technical assessments, portfolio reviews, and in-depth interviews conducted by experts in the field. This rigorous evaluation ensures that candidates for specialized roles like MLOps engineers not only have the right experience on paper but also possess the practical skills to excel. This focus on true technical competence and cultural alignment leads to better hires and higher retention rates.
Access to a Global Talent Pool
The best AI talent isn’t always in your backyard. A standout staffing partner has a broad, international network and the expertise to source candidates from a global talent pool. They are skilled at managing the complexities of different time zones and markets, giving you access to exceptional professionals you might not find otherwise. For VC firms with portfolio companies spread across the country or operating remotely, this global reach is invaluable. It ensures you’re not just finding the best available candidate, but the best possible candidate for the role, period.
Data-Backed Market Insights
A valuable partner does more than just recruit; they provide strategic advice backed by real-world data. They should be able to offer you current insights into hiring trends, competitive compensation packages, and effective strategies for attracting and retaining top performers in the AI space. Look for a firm that acts as a market intelligence resource, helping you and your portfolio companies make informed decisions. This data-driven guidance is essential for staying competitive and building teams that can drive real growth. These insights are often shared through regular updates or industry news.
Flexibility to Fit Your Needs
Startups and scaling companies have constantly changing needs, and an ideal staffing partner understands that. They offer flexible hiring solutions that can adapt to any situation, whether a portfolio company needs a temporary contractor for a specific project, a full-time permanent hire to build out a core team, or an executive search to find its next leader. This adaptability means the partner can support your companies at every stage of their growth journey. They work with you to find the right talent in a way that aligns with your timeline, budget, and strategic objectives, ensuring a seamless and effective partnership.
Why Traditional Staffing Fails VCs
For venture capital firms and their portfolio companies, speed and precision are everything. You’re not just filling a role; you’re building a team that can innovate and scale at an incredible pace. This is where traditional staffing agencies often miss the mark. Their one-size-fits-all approach, built for a slower, more generalized corporate world, simply can’t keep up with the unique demands of the AI industry. The stakes are too high to rely on a partner who doesn’t understand the difference between a data scientist and a machine learning engineer.
Generalist recruiters often lack the deep technical knowledge needed to properly vet candidates, leading to a pipeline of mismatched profiles that waste everyone’s time. They move too slowly, causing startups to miss out on top talent in a market where candidates are off the table in days, not weeks. They focus on filling a seat rather than finding a true cultural fit, which can be disastrous for a small, agile team. For VCs who need to see their investments grow, relying on these outdated methods is a significant risk. A specialized AI staffing partner understands the urgency and the technical specifics required to build a winning team from the ground up.
The Struggle to Hire Fast and Scale Up
In the world of VC-backed startups, the clock is always ticking. You need to hit growth milestones, launch products, and outpace competitors. This requires building a world-class team—yesterday. Traditional staffing firms, with their lengthy, manual processes, often become a bottleneck. They can take weeks just to source a handful of candidates, by which time your top choice has likely accepted another offer. This slow pace directly hinders a startup's ability to scale.
A specialized partner recognizes that speed is a competitive advantage. They leverage focused networks and efficient processes to connect you with qualified candidates much faster. For highly specialized roles in AI engineering or machine learning, a partner with a pre-vetted talent pool can cut your hiring time significantly, allowing your portfolio companies to build their teams and get back to building the future.
When Recruiters Don't "Get" the Tech
There’s nothing more frustrating for a hiring manager than interviewing candidates who clearly lack the fundamental skills for the job. This happens all too often when generalist recruiters are tasked with filling complex AI roles. They might see "Python" on a resume and assume the candidate is a fit for a Senior Machine Learning Engineer position, without understanding the nuances of libraries, frameworks, and model deployment.
This lack of technical depth leads to a weak pipeline and wastes valuable time for your engineering leaders. A true AI staffing partner is staffed by people who speak the language of tech. They have a deep understanding of different areas of expertise, from data science to MLOps, and can effectively screen candidates for the specific technical skills you need. This ensures that only the most qualified individuals make it to the interview stage.
The Challenge of Finding the Right Cultural Fit
In a startup environment, a single hire can have a massive impact on the team's dynamic and productivity. That’s why cultural fit is just as important as technical skill. A brilliant engineer who can’t collaborate or adapt to a fast-paced setting can do more harm than good. Traditional recruiters, however, often treat hiring like a box-checking exercise, focusing solely on matching keywords from a job description to a resume.
This approach completely overlooks the human element. A great staffing partner goes deeper. They take the time to understand your company’s mission, values, and work environment. Through thorough screening and thoughtful conversations, they assess not just what a candidate can do, but who they are. This focus on holistic fit leads to hires who are more engaged, productive, and likely to stay with the company long-term.
Balancing Cost and Return on Investment
It’s easy to look at a recruiting fee as a simple expense, but it’s more valuable to see it as an investment. The real cost of hiring isn’t just the recruiter’s fee; it’s the time your team spends sourcing and interviewing, the productivity lost from an open role, and the massive financial hit of a bad hire. A mismatched employee can cost a company tens of thousands of dollars in salary, severance, and the cost of recruiting a replacement.
While a specialized partner charges a fee for their service, they deliver a strong return on that investment. By presenting only highly qualified, well-vetted candidates, they save your team countless hours. More importantly, their expertise in finding the right technical and cultural fit dramatically reduces the risk of a bad hire, saving you money and helping your portfolio companies grow more effectively.
What an AI Staffing Partner Actually Does
So, what does a specialized AI staffing partner really do all day? It’s much more than just forwarding resumes found on LinkedIn. Think of them as an extension of your own team—a dedicated group of specialists who live and breathe the AI talent market. While a generalist recruiter might struggle to tell the difference between a data scientist and a data engineer, a true AI partner understands the subtle but critical distinctions in skills, tools, and project experience that define these roles.
Their work is a blend of art and science. They use sophisticated sourcing technology to identify potential candidates but rely on deep human expertise to engage and vet them. They aren't just filling a single open position; they are building strategic talent pipelines that your portfolio companies can tap into as they grow. This proactive approach means that when a critical hiring need arises, you’re not starting from scratch. Instead, you’re connecting with a curated pool of professionals who have already been screened for technical skills and cultural alignment. From hands-on AI engineers to visionary technical leaders, a great partner handles the entire talent acquisition lifecycle, allowing your team to focus on building great products.
Putting Technical Skills to the Test
One of the biggest time-sinks in hiring is screening candidates who look great on paper but lack the necessary hands-on skills. A specialized AI staffing partner solves this by conducting rigorous technical vetting upfront. Their recruiters often have technical backgrounds themselves or are trained to assess core competencies in areas like machine learning algorithms, programming languages, and MLOps frameworks. They conduct thorough checks to ensure candidates not only have the right experience but can also apply it effectively. This process filters out unqualified applicants early, so your engineering leaders only spend their valuable time interviewing serious, high-caliber contenders who are a strong match for your company’s needs.
Building a Strong Candidate Pipeline
The best AI talent is rarely looking for a job. They’re usually busy building incredible things at their current company. A top-tier staffing partner knows this and doesn’t just rely on job boards. They are constantly building and nurturing a robust network of passive candidates. By leveraging proprietary technology and deep industry connections, they identify and engage with thousands of professionals each year. This creates a strong pipeline of vetted talent that is ready to be activated when the right opportunity comes along. These hiring solutions give you access to a hidden market of experts you simply wouldn’t find through traditional recruiting methods.
Filling AI and Machine Learning Roles
Finding someone who can build, train, and deploy complex models is a unique challenge. Roles in Machine Learning, NLP, or Computer Vision require a specific blend of software engineering prowess and advanced mathematical knowledge. An AI staffing partner specializes in these niche areas. They understand the intricacies of different frameworks like TensorFlow and PyTorch and know what a successful project in this field looks like. They can effectively communicate the unique challenges and opportunities of your role to attract candidates who are passionate about solving the exact problems your company is facing.
Finding Data Science and Analytics Experts
A great data scientist does more than just crunch numbers; they uncover insights that drive business strategy. But finding someone with the right mix of statistical knowledge, coding ability, and business acumen is tough. A specialized partner understands the full spectrum of Data Science & Analytics roles, from data analysts who visualize trends to research scientists who develop new algorithms. They can distinguish between different skill sets and experience levels to find the perfect fit, whether you need someone to build predictive models or establish your entire data infrastructure from the ground up.
Sourcing Top Engineering Leaders
Hiring for leadership positions like a Head of AI or a Director of Engineering requires a completely different approach. These searches are about finding a strategic visionary who can build and inspire a team, not just an individual contributor. A skilled AI staffing partner provides executive search services tailored to these high-stakes roles. They operate with discretion, leveraging their executive networks to identify proven leaders. They manage the entire process, from initial confidential outreach and in-depth vetting to handling complex offer negotiations, ensuring you land a leader who can guide your company’s technical future.
How to Choose the Right AI Staffing Partner
Finding the right AI staffing partner is about more than just filling an open role; it’s about finding a team that understands the technical landscape and can act as a true extension of your own. With so many firms out there, it can be tough to tell who really has the expertise you need. The right partner will save you time, connect you with exceptional talent that others can’t find, and ultimately help your portfolio companies scale faster.
When you’re vetting potential partners, it’s helpful to have a clear framework. You need to look beyond the sales pitch and dig into their process, experience, and how they structure their partnerships. By asking the right questions and knowing what to look for, you can find a firm that not only gets the job done but also becomes a strategic asset for your entire portfolio. Here are the key areas to focus on to make sure you’re making the right choice.
Evaluate Their Tech Stack
In a field driven by technology, your staffing partner should be using it to their advantage. A top-tier firm won’t just rely on LinkedIn and a dusty database. Instead, they’ll use their own AI-powered tools and proprietary technology to identify, screen, and match candidates with incredible precision and speed. This tech-forward approach allows them to uncover hidden talent and assess technical skills far more effectively than a manual process ever could.
When you’re in talks with a potential partner, ask them to walk you through their tech stack. How do they use AI to source candidates? What platforms do they use to manage the hiring pipeline and communicate with you? The best firms offer transparent hiring solutions that give you clear visibility into their process and progress.
Check Their Industry Experience
Generalist IT recruiters often struggle with the specifics of AI and machine learning roles. They might not grasp the difference between a Data Scientist and a Data Engineer or understand the nuances of different ML frameworks. This is why deep industry specialization is non-negotiable. You need a partner whose entire focus is on the AI and data science ecosystem. They speak the language, know the key players, and have a pre-existing network of top-tier talent.
Look for a firm that exclusively handles roles in AI and machine learning. Review their case studies and the types of positions they’ve successfully filled. A partner with proven expertise will be able to quickly understand your technical requirements and cultural needs, leading to better matches, faster.
Understand Their Service Agreements
A clear and flexible service agreement is the foundation of a strong partnership. Before signing anything, make sure you fully understand the terms, including the fee structure, payment schedule, and any guarantees they offer. For venture capital firms, it’s especially important to find a partner who can offer consistent terms across your portfolio companies. This simplifies the process and ensures every company gets the same level of service and pricing.
Don’t hesitate to ask about the specifics. What does their process look like from start to finish? What happens if a candidate doesn’t work out after a few months? A great partner will have clear answers and be willing to tailor their agreement to fit your needs, offering flexible hiring models that support your growth.
Look at Their Partnership Models
The best staffing relationships feel less like a transaction and more like a strategic partnership. Look for a firm that offers different engagement models to suit your needs, whether it’s for a single critical hire or building out an entire team. Some firms can act like an embedded, in-house recruiting department, integrating with your team to manage the entire hiring process. This approach is often ideal for fast-growing startups that need to scale quickly.
Discuss whether they offer contingency search, retained search, or other hybrid models. A true partner will work with you to determine the best approach for each portfolio company’s unique situation. They should be invested in your long-term success, not just in closing a single placement. This collaborative mindset is what separates a good recruiter from a great staffing partner.
Review Their Pricing
While cost is always a factor, the cheapest option is rarely the best, especially when it comes to securing top AI talent. Instead of focusing solely on the fee percentage, consider the overall value the firm provides. A higher fee might be justified if the partner can deliver higher-quality candidates in half the time, saving your portfolio companies valuable time and resources. The cost of a bad hire or a long-vacant role far outweighs the investment in a quality recruiting partner.
Ask for a clear breakdown of their pricing structure and see if they offer preferred rates for VC partners. A firm confident in its ability to deliver will be transparent about its fees and can clearly articulate the return on your investment. Look for a partner who focuses on value and results.
How to Measure Your Success and ROI
Partnering with a specialized AI staffing firm is an investment, and like any good investment, you need to track its performance. The return isn't just about filling a seat; it's about the strategic value that new hire brings to your portfolio company. When you find the right partner, you’re not just saving time—you’re gaining a competitive edge. The key is to move beyond vanity metrics and focus on the numbers that truly reflect the impact on your business goals. By tracking a few key performance indicators, you can clearly see the value your staffing partner delivers and ensure the relationship is driving real growth across your portfolio. Let's look at the four most important metrics for measuring your success.
Tracking Time-to-Hire
In the fast-paced world of AI development, speed is everything. Every day a critical role like a Machine Learning Engineer sits vacant, a product roadmap gets delayed and a competitor gets further ahead. That’s why time-to-hire is one of the most straightforward and vital metrics to track. A great AI staffing partner should drastically shorten your hiring cycle. For example, some firms report that their clients hire two times faster on average compared to traditional hiring methods. You can measure this by tracking the time from when a job is opened to when an offer is accepted. A shorter timeline means your portfolio companies get the talent they need to innovate and execute faster.
Measuring Quality of Hire
Filling a role quickly is great, but it means little if the new hire isn't the right fit. Quality of hire is a measure of how much value a new employee adds to the company. While it can be harder to quantify, you can track it through proxies like offer acceptance rates, performance reviews, and retention rates after the first year. A high offer acceptance rate—some top firms see around 80% of their offers accepted—is a strong indicator that your partner is finding candidates who are genuinely excited about the role and the company. This shows they’re not just matching keywords on a resume but are truly understanding the technical and cultural needs of your data science and analytics teams.
Assessing Impact on Portfolio Growth
The ultimate goal of hiring top AI talent is to fuel the growth of your portfolio companies. A strong staffing partner acts as a growth catalyst. The right hires can accelerate product development, secure new customers, and solve complex problems that unlock new revenue streams. This strategic advantage is exactly what helps PE and VC firms get ahead of the competition. While you can't always draw a straight line from a single hire to an increase in valuation, you can look for correlations. Are companies in your portfolio hitting their milestones faster after key roles are filled? Is their technical leadership stronger? A great partner contributes directly to this momentum.
Recognizing Long-Term Scaling Benefits
A truly valuable staffing partnership isn't about a single transaction; it's about building a sustainable talent pipeline for the future. As your portfolio companies grow, their hiring needs will evolve. A strategic partner understands this and helps you plan for it. They provide market insights, help structure new teams, and adapt their search as needs shift from individual contributors to leadership roles. Specialized AI recruiting companies are built to find skilled people much faster than internal teams, which is essential for scaling. The real ROI comes from a partner who grows with you, helping your companies build the world-class teams they need to win their markets over the long run.
What's Next for AI Staffing?
The world of AI talent is constantly shifting, and the way we find and hire top performers is changing right along with it. For venture capital firms, staying ahead of these trends isn't just an advantage—it's essential for ensuring your portfolio companies have the teams they need to succeed. The right staffing partner is one who not only understands the current landscape but is also prepared for what’s coming next. The days of simply posting a job and waiting for applicants are long gone, especially for the highly specialized roles that drive innovation in AI.
The future of AI staffing is all about speed, specialization, and strategic alignment. It means leveraging technology to find candidates faster, understanding the nuanced differences between a machine learning engineer and a data engineer, and building partnerships that can scale with your portfolio's growth. The competition for top-tier professionals is fierce, and the firms that win will be those that adapt their strategies to meet the moment. This means looking beyond traditional recruiting methods and embracing new tools and partnership models designed for the unique challenges of the AI industry. Keeping an eye on these developments will help you choose a partner who can provide lasting value and a genuine competitive edge in the race for talent.
New Tech on the Horizon
The most forward-thinking staffing firms are now using AI to recruit AI talent. This involves more than just keyword-searching resumes. Modern recruiting platforms leverage sophisticated algorithms to match candidates to roles based on nuanced skill sets, project experience, and even potential for growth. This tech-driven approach means a faster, more accurate screening process. Instead of spending weeks sifting through applicants, recruiters can quickly identify a shortlist of the best-qualified individuals. For VCs, partnering with a firm that uses this technology means your portfolio companies get connected with top-tier candidates faster, shortening the time-to-hire and accelerating their product roadmaps. These advanced hiring solutions combine the best of human expertise with the power of AI.
Key Industry Trends to Watch
The demand for AI talent is growing at an incredible pace. The AI recruitment market is projected to expand from $617.5 million to over $1 billion by 2032, signaling a massive increase in competition for skilled professionals. This growth isn't just about hiring more data scientists; it's about finding specialists in niche fields like natural language processing (NLP), computer vision, and MLOps. As the industry matures, the need for highly specific expertise becomes more critical. VCs should look for staffing partners who have deep knowledge in these distinct areas of expertise. A generalist tech recruiter simply won't have the network or the technical understanding to vet candidates for these complex roles effectively.
How Partnership Models are Changing
Staffing partnerships are becoming more flexible and tailored, especially for the VC community. The old model of transactional, one-off placements is giving way to strategic, long-term relationships. Innovative firms are creating programs specifically for VCs and their portfolio companies, offering benefits like shared talent pools, flexible hiring options (from contract to full-time), and consistent pricing across the board. This approach recognizes that a VC's needs are unique; you're not just filling one role but building out entire teams across multiple companies. A partner who understands this dynamic can provide scalable, cost-effective solutions that support your entire portfolio's growth, acting as a true extension of your team.
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Frequently Asked Questions
What's the real difference between a specialized AI staffing partner and a regular tech recruiter? Think of it as the difference between a general practitioner and a heart surgeon. A regular tech recruiter understands the broad landscape of technology roles, but a specialized AI partner has deep expertise in the specific, complex world of artificial intelligence. They understand the nuances between different machine learning frameworks, know what a strong MLOps portfolio looks like, and have a network of high-caliber AI professionals who aren't actively looking for jobs. This specialization allows them to vet candidates more thoroughly and find a better technical match, faster.
My startup has an internal HR team. Why would we need an external partner? An internal HR team is fantastic for managing culture, benefits, and general hiring, but they're often stretched thin. When you need to fill highly technical AI roles, they're competing for talent against every other company out there. A specialized partner complements your internal team by bringing a pre-built network of vetted candidates and a dedicated focus on sourcing. This allows your team to continue supporting the entire organization while the partner accelerates the search for niche talent, saving your engineering leaders countless hours on screening calls.
Isn't hiring a specialized firm more expensive than traditional recruiting? While there's an upfront investment, it's important to consider the total cost of a vacant role or a bad hire. Every week a critical AI position sits empty, projects stall and you lose ground to competitors. A bad hire can cost you tens of thousands in salary, severance, and the resources needed to recruit a replacement. A specialized partner minimizes these risks by delivering highly qualified candidates quickly, leading to a much stronger return on investment through reduced downtime and higher employee retention.
How does a staffing partner ensure a candidate is a good cultural fit, not just technically skilled? A great partner knows that technical skills are only half the equation, especially in a startup. Their process goes beyond technical assessments. They spend time understanding your company's mission, work style, and team dynamics. During their conversations with candidates, they assess communication skills, problem-solving approaches, and career motivations to see if there's a genuine alignment. This holistic approach ensures you're not just hiring a skilled engineer, but a collaborative team member who will thrive in your environment.
We have several portfolio companies that are all hiring. Can a single partner handle that? Absolutely. In fact, this is one of the biggest advantages for a VC firm. The best AI staffing partners offer flexible partnership models designed to support an entire portfolio. They can create consistent terms and pricing, act as a centralized recruiting resource, and even share talent pipelines across your companies. This streamlines the hiring process and gives every startup in your portfolio access to the same high level of service and talent, helping them all scale more effectively.
