After raising a seed round, startups founders and employees often grapple with determining fair salaries and equity distributions. Kruze Consulting, a CPA firm specializing in venture-backed startups, analyzed payroll data from over 450 seed-stage companies, revealing notable trends.

Founder Executive Salaries (Seed Stage)

  • CEO: $132,000
  • CTO: $134,000
  • COO/Operations: $135,000
  • Product/CPO: $149,000

Note: Founder salaries tend to increase significantly post-raise. Series A founders earn an average of $183,000, and Series B founders average $218,000.

Employee Starting Salaries (Seed Stage)

  • Engineering (Mid-level):
    • Bay Area: $100,000–$145,000
    • Other Tech Hubs: $90,000–$130,000
  • Sales (Mid-level):
    • Bay Area: $80,000–$110,000
    • Other: $70,000–$100,000
  • Product Titles:
    • Bay Area: $130,000–$185,000
    • Other: $110,000–$175,000
  • Marketing (Mid-level):
    • Bay Area: $100,000–$175,000
    • Other: $80,000–$145,000

Senior engineers command $180,000–$235,000 in the Bay Area and $160,000–$210,000 elsewhere, while entry-level engineers earn $75,000–$105,000.

Equity Distribution for Initial Hires

Equity grants, vested over four years, are an enticing part of startup compensation. Data from Carta on over 8,000 grants shows typical equity for the first five hires:

  • First hire: 0.5%–4% (median: 1.49%)
  • Second hire: 0.3%–2% (median: 0.85%)
  • Third hire: 0.21%–1.2% (median: 0.50%)
  • Fourth hire: 0.18%–1% (median: 0.44%)
  • Fifth hire: 0.13%–0.8% (median: 0.34%)
  • Role Matters: Technical and product roles tend to earn more than executive titles like CEO in early stages.
  • Equity Allure: Early employees are compensated with meaningful equity, making startups attractive despite lower salaries compared to larger companies.
  • Location Impact: Salaries are higher in the Bay Area but are balanced by cost-of-living adjustments in other regions.

This data provides a roadmap for startups to attract and retain talent while maintaining financial prudence during their growth phases.

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