How much should I give my founding engineer?
How much should I give my founding engineer?
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Determining equity for a founding engineer depends on several factors, including their level of commitment, technical expertise, the stage of your startup, and how integral their role is to your company’s core vision. Generally, early-stage startups might allocate anywhere from 1% to 5% equity to key technical founders, with the potential for adjustments based on upcoming funding rounds and dilution.
It’s also important to consider vesting schedules (typically over 4 years with a one-year cliff) to align incentives and ensure long-term commitment. Additionally, communicating transparently about how equity valuation, company growth, and future financing impact their share can foster trust and motivation. Ultimately, balancing fair compensation with strategic incentives can help attract and retain top technical talent essential for scaling your venture.