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.

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.