Do early-stage startups pay well?

At an earlier-stage company, you can almost certainly expect a lower base salary than the industry norm, regardless of your previous experience. As the company matures, the salaries of all positions start to get closer and closer to market rate.

How much do early-stage startups pay?

On average, about 20\% of companies that make it to Series A successfully exit, which makes the expected value of the equity portion $21,000 per year. This means that, in total, the average early startup employee earns $131,000 per year.

Can you get rich from working at a start up?

Founding a company means that you will have a big enough piece of it that even if it is a moderate success (say an exit at $25M+) you’ll make at least a few million dollars. But simply taking an individual contributor job at a startup is unlikely to make you rich.

Should I join a very early-stage startup?

If you’re early on in your career, with high ambitions and low monetary constraints, you may prioritize learning and growth. If this is the case, an early-stage startup is best for you. Early-stage companies are often more willing to take chances on employees.

Do startups pay bonuses?

For the early stage startup, it is quite common for a compensation package…at all levels…to be void of an official target bonus. Some may offer a spot bonus at the end of the year for a job well done, but those kudos are purely discretionary and nowhere to be found in writing.

How many employees do early stage startups have?

The average number of employees in a startup decreased from five in 1994 to four in 2019, a 20\% drop.

Do early-stage startup employees earn more than founders?

Since the average startup founder who makes it to Series A earns more than a large company employee, many believe that early-stage startup employees also earn more (albeit less than founders). Dustin Moskovitz has even claimed that startup early employees have better earnings prospects than founders.

How much does the average startup employee earn?

On an amortized basis, .35\% equity is $105,000 per year. 2 On average, about 20\% of companies that make it to Series A successfully exit, which makes the expected value of the equity portion $21,000 per year. This means that, in total, the average early startup employee earns $131,000 per year. 3

Why don’t startups offer salary?

But one thing many startups can’t offer is a salary that meets market rate. Early stage startups in particular might find it hard to attract and retain talented people; people who could be making a lot more money elsewhere.

How much equity do startup developers get paid?

According to AngelList, early-stage backend developers, for example, generally get about $110,000 in salary and .7\% equity (salary data from Riviera is similar). 1 While the startup salary data is fairly clear, it’s hard to know how to value the equity portion of their compensation.