Startup Compensation

I checked out a chart on Ackwire that detailed the compensation for a bunch of people at startups. The salaries varied between $50k and $150k.

Equity was normally much less than 1%. Mostly it hovered around a quarter of 1%. There were some notable exceptions. One person had a whopping 25% equity in their startup, but had a very low salary. However another had a respectable 3% equity in addition to a high salary ($130k).

The valuations of the companies were mainly in the $1M to $10M range. So if you consider the average equity was a quarter of 1%, then the equity would be worth between $2500 and $25k. Ouch. I guess you better love what you are doing. Because it does not look like these people are getting rich, even if the startup is successful and gets to an exit.