When it comes to seed-stage startups, one of the most pressing questions founders face is how much to pay themselves and their early employees. Now, thanks to an analysis by Kruze Consulting, a CPA firm specializing in venture-backed startups, we have a clearer picture of the average salaries for these critical roles.

Kruze's analysis, based on actual payroll records from over 450 seed-stage startups, reveals some interesting trends. Perhaps unsurprisingly, technical engineering and product positions tend to command higher salaries than the CEO role. However, one surprise is that COO/operations roles tend to be paid even higher, on average, which could raise eyebrows among seed-stage VCs who may view this as a red flag for spending and budget management.

According to Kruze's data, the average salaries for founder executives are: CEO, $132,000; CTO, $134,000; COO/Operations, $135,000; and Product/CPO, $149,000. While these figures may not be particularly high in the context of the startup world, especially in the Bay Area, they do provide a benchmark for founders and investors to consider.

It's worth noting that founders tend to give themselves healthy raises with each subsequent funding round. Kruze's data shows that the average pay in the founder executive category increases to $183,000 after the Series A round and reaches $218,000 by Series B.

For non-founder employees, the salaries are also revealing. Mid-level engineers in the Bay Area can command salaries ranging from $100,000 to $145,000, while sales and marketing professionals can expect salaries between $80,000 to $110,000 and $100,000 to $175,000, respectively. Product titles, meanwhile, can fetch salaries between $130,000 to $185,000 in the Bay Area.

In addition to their salaries, employees at startups also tend to receive equity as part of their compensation package. Data from Carta, covering over 8,000 initial grants, shows that the first five hires can expect equity ranging from 0.13% to 4% of the company, vested over four years.

These figures provide valuable insights for founders, investors, and employees alike, helping to inform decisions around compensation and talent acquisition in the competitive startup landscape. As the startup ecosystem continues to evolve, it will be interesting to see how these salary trends shift and adapt to changing market conditions.

Source: Kruze Consulting, Carta