Startups · Entrepreneurship

What are the typical percentages of equity that should be granted to early employees at a startup?

Ioannis MSc IT professional

September 20th, 2016

We already have the team of 3 cofounders in place and we are currently in the process of onboarding the first employees. These employees will be in charge of engineering, marketing, and business development. Appreciate the guidance.

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mike precobb sr. sales/mktg ex. accelerated early-stage firms

September 20th, 2016

you'll need much more than 1.5%.  I assume these are VP-level.

I don't know the disciplines of the 3 co-founders, but I imagine it's at least 17% ea (so you can have control).  If these hires are top talent and will build the teams, I would consider 4% each.

Muamer Avdic

September 20th, 2016

Salary + 1-1.5% is pretty reasonable, but you might have to up the % in order to get top tier talent.