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Dear SaaStr: How Much Equity Do You Give to Employees at Different Stages of Growth?

  • Equity allocation varies based on the stage of the company and the role of the employee.
  • During Pre-Seed / Seed Stage, co-founders usually split 20%-50% of the company, while the first 10 employees may receive 10%-15% in total.
  • In the Early Growth Stage ($1M-$10M ARR), VPs/executives might get 0.5%-1.5% equity, senior engineers/managers 0.2%-0.5%, and mid-level employees 0.1%-0.2%.
  • At the Scaling Stage ($10M-$50M ARR), equity grants become less of a motivator, with executives receiving 0.3%-1% equity and mid-level employees 0.05%-0.1%.

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