Average Startup Salaries by Role and Stage: 2024 Data

Compensation is one of the biggest decisions founders make repeatedly. Pay too little and you can't hire. Pay too much and you burn runway unnecessarily. Get the equity balance wrong and you create resentment or dilute founders excessively.

The challenge is that startup compensation doesn't follow corporate patterns. You're competing with big tech salaries while having limited cash. You're offering equity that may or may not be worth something. And everything changes as you grow.

This data helps you benchmark. Know what's normal so you can make informed decisions about where to be competitive and where to trade cash for equity.

Pre-seed and bootstrapped:

• Founder salary: $0-$50K (often $0)
• Many founders don't pay themselves until funding
• When paid, typically covers basic living expenses
• Some accelerators set minimums around $50K

Seed stage:

• Founder salary: $75K-$120K
• Lower than market rate for comparable roles
• Intended to cover living expenses without luxury
• Bay Area founders often on higher end

Series A:

• Founder salary: $100K-$175K
• Starting to approach (but not match) market rates
• Boards may have opinions on founder compensation
• Still trading salary for equity value

Series B and beyond:

• Founder salary: $150K-$300K+
• Approaches executive market rates
• Depends heavily on company performance
• Often includes bonuses tied to milestones

Founder salaries are typically 30-50% below what they'd earn as employees at similar-stage companies. The equity upside is meant to compensate.

Junior engineers (0-2 years experience):

• Seed stage: $80K-$120K
• Series A: $100K-$150K
• Series B+: $120K-$180K
• Equity: 0.05-0.25%

Mid-level engineers (3-5 years):

• Seed stage: $100K-$150K
• Series A: $130K-$180K
• Series B+: $150K-$220K
• Equity: 0.1-0.5%

Senior engineers (6+ years):

• Seed stage: $130K-$180K
• Series A: $160K-$220K
• Series B+: $180K-$280K
• Equity: 0.25-1.0%

Engineering managers:

• Series A: $180K-$250K
• Series B+: $200K-$300K+
• Equity: 0.5-1.5%

Bay Area and NYC salaries are typically 20-40% higher. Remote roles have compressed this somewhat but location premiums still exist.

Sales (individual contributor):

• SDRs: $50K-$80K base + commission
• AEs (Seed/A): $80K-$120K base + commission
• AEs (B+): $100K-$150K base + commission
• OTE typically 2x base for quota-carrying roles
• Equity: 0.05-0.3%

Marketing:

• Junior: $60K-$90K
• Manager: $90K-$140K
• Director: $130K-$200K
• VP: $175K-$280K
• Equity: 0.05-1.0% depending on level

Operations:

• Junior: $50K-$80K
• Manager: $80K-$120K
• Director: $120K-$180K
• Equity: 0.05-0.5%

Product:

• Junior PM: $90K-$130K
• Senior PM: $130K-$180K
• Director: $160K-$220K
• VP: $200K-$300K
• Equity: 0.1-1.0%

Non-technical roles typically earn 10-20% less than engineering at the same level, with equity grants also proportionally smaller.

First 10 employees (seed stage):

• Engineer #1-3: 0.5-2.0%
• Engineer #4-10: 0.25-1.0%
• First sales hire: 0.3-1.0%
• First marketing hire: 0.2-0.75%
• First ops hire: 0.1-0.5%

Employees 11-50 (Series A):

• Engineers: 0.1-0.5%
• Sales/Marketing: 0.05-0.3%
• Operations: 0.05-0.2%

Employees 50+ (Series B+):

• Engineers: 0.02-0.2%
• Sales/Marketing: 0.01-0.1%
• Operations: 0.01-0.1%

Executive hires:

• VP level: 0.5-1.5%
• C-level: 1.0-3.0%
• External CEO: 5-10%

Equity percentages shrink as companies grow because absolute values increase. 0.1% of a $100M company ($100K) is worth more than 1% of a $5M company ($50K).

Location-based salary multipliers (vs. national average):

• San Francisco Bay Area: 1.3-1.5x
• New York City: 1.2-1.4x
• Seattle: 1.15-1.3x
• Boston: 1.1-1.25x
• Austin/Denver/LA: 1.0-1.15x
• Midwest cities: 0.85-1.0x
• Southeast cities: 0.8-0.95x
• Remote (location-adjusted): varies by company policy

Remote work impact:

• Some companies pay SF rates regardless of location
• Others use location-based bands
• Most common: geographic tiers (Tier 1 cities, Tier 2, etc.)
• Remote has compressed but not eliminated location premiums

International considerations:

• Western Europe: typically 70-90% of US rates
• Eastern Europe: typically 40-60% of US rates
• Latin America: typically 30-50% of US rates
• Southeast Asia: typically 25-45% of US rates

Location arbitrage is real. Hiring senior engineers in lower-cost markets can save 30-50% with similar quality.

The challenge:

• FAANG offers $200K-$400K+ total comp for senior engineers
• Startups rarely match base salary
• Big tech RSUs are liquid and lower risk

How startups compete:

• Equity upside story (if it works, much bigger outcome)
• Mission and impact that big companies can't offer
• Seniority and responsibility faster
• Less bureaucracy, more ownership
• Work directly with founders

Who joins startups over big tech:

• People who want to build, not maintain
• Those with financial flexibility to take lower base
• Repeat startup employees who've seen equity pay off
• People who thrive in ambiguity

Who you probably can't hire:

• Recent grads with student loans needing high base
• People with golden handcuffs (unvested big tech equity)
• Risk-averse candidates regardless of pitch

Don't try to win on compensation. Win on opportunity, mission, and growth potential.

Common mistakes:

Paying too little:

• Losing candidates to competitors
• High turnover from underpaid employees
• Attracting only candidates with no other options

Paying too much:

• Burning runway unnecessarily
• Creating expectations you can't sustain
• Making later hires feel underpaid by comparison

Equity mistakes:

• Giving too much to early employees (leaving nothing for later hires)
• Giving too little to key hires (they leave when options are underwater)
• Not explaining equity value clearly (employees don't value it)

Process mistakes:

• Not having clear compensation bands
• Negotiating every hire individually (creates inequity)
• Not adjusting as company grows (market rates change)

Best practices:

• Set clear bands by role and level
• Benchmark against similar-stage companies, not big tech
• Be transparent about equity value and methodology
• Review compensation annually and adjust for market

Should founders pay themselves at all before funding? Depends on financial situation. If you have savings, paying yourself $0 extends runway. If you need income to survive, pay minimal living expenses. Don't let pride prevent you from eating.

How do I know if my compensation is competitive? Use benchmarking tools like Pave, Carta Total Comp, or Option Impact. Talk to founders at similar stage companies. Recruiters can also provide market data.

Should I give the same equity to all first employees? Not necessarily. Consider role criticality, candidate alternatives, and their value to company success. But don't create massive disparities that breed resentment.

When should I give raises? Annually at minimum. After fundraising rounds when budgets expand. When market rates shift significantly. When someone's role expands substantially.

How do I handle candidates who negotiate aggressively? Have clear bands and stick to them. Explain your philosophy. Offer creative solutions (signing bonus, earlier equity refresh). But don't break your structure for one hire.