Article · 12 min read

How much equity should I give early employees?

Carta Free Intermediate

This is the benchmark data you need for the early engineer side of the question. Carta shows real grant sizes by hire number and role: a first engineer around one to two percent, dropping fast for later hires, far below co-founder tens of percent. Use these numbers to set an early engineer grant that is fair without treating them like a founder.

  • First engineering hires typically land near one to two percent, not tens
  • Grants drop sharply with each hire as risk falls and salary rises
  • Technical hires usually command more equity than non technical peers

The question it answers

  1. What equity should I offer a technical co-founder vs. an early engineer?

Read with it

  1. The definitive, data-driven book on early founding-team decisions, drawing on quantitative research covering nearly 10,000... Princeton University Press Book · ~480 pages The Founder's Dilemmas Noam Wasserman
  2. The canonical dynamic-equity framework for fairly splitting ownership based on real contributions before funding, when nobody... slicingpie.com Tool · Framework + software + handbook Slicing Pie: Dynamic Equity Split Model & Calculator Mike Moyer
  3. Altman's condensed operating manual for founders, including sharp guidance on focus, spending your time on what only you can... playbook.samaltman.com Article · long Startup Playbook Sam Altman
  4. This is the essay to read first, from a YC partner who co-founded Justin.tv/Twitch and has done equal splits across his own... Y Combinator Essay · ~8 minute read How to Split Equity Among Co-Founders Michael Seibel
  5. A free, no-signup calculator that forces you and your co-founder to actually weigh the inputs (idea, roles, who is full time,... Foundrs Tool · ~10 minutes to work through Foundrs Co-Founder Equity Calculator Foundrs
  6. When a term sheet lands and you are tempted to fight over the last point of valuation, this is the essay that reframes the... paulgraham.com Essay · 12 min read The Equity Equation Paul Graham
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