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28.10.2015
After employee #1, salaries for employees were relatively close together, with one noticeable jump occurring around the 13th or 14th hire.
I expected to see a consistent drop for each additional employee, but was surprised to find that offers remained consistently high for many employees at a time.
The sample size of non-engineering jobs at early stage companies is too small to analyze rigorously. Non-director role salaries were very inconsistent, ranging from $40k - 60k to $80k - $120k (for the same job titles). That analysis looked at attributes like job locations, vesting schedules, and commonly requested skills.
In my experience, founders frequently give out equity grants that are too generous or too stingy.


In those cases, their equity stakes were at the top of the ranges for their employee numbers (e.g. For other locales like NYC or Houston, a hack that might work is to look at a dozen random, high-quality companies and see how their offers compare to Silicon Valley's. The dangers of stinginess are that candidates will choose to work somewhere else and that you will waste a lot of time interviewing people who definitely won't take your offer. For example, the first graph shows that for hire #1, 6 startups offered up to 2% equity, 4 startups offered up to 3%, and 3 startups offered up to 5%. The danger of generosity is that, especially for the first few hires, you are giving away much more equity than you need to. That is, a Junior Front-End Engineer is more likely to get an offer in the 20th percentile, while a Senior Full-Stack Engineer is more likely to get an offer in the 80th percentile.


That equity could be used to give stronger offers to multiple candidates later on, to raise more money from investors, or to retain more decision-making power for founders.
Finally, I grouped startups by the number of employees they had, then graphed the equity and salary offers for different company sizes.



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