There’s a powerful concept known as “shipping the org chart”. It was brilliantly outlined by Steven Sinofsky in his piece on Functional vs Unit Organizations. The TL;DR is that the design of your org makes its way into your product. In other words, your product is significantly influenced by the nature of the organization you’ve designed within your company.
When a startup has enough momentum to raise enough capital ($15–20M in the bank), they eventually reach a phase in their journey where they need to hire and onboard their first executives and build an executive team. That’s usually when they have tens of millions in capital and the founder needs to offload responsibilities to functional experts, such as a VP of Product, Engineering, Operations, Sales, and so on.