Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A.
Use this skill when
Working on team composition analysis tasks or workflows
Needing guidance, best practices, or checklists for team composition analysis
Do not use this skill when
The task is unrelated to team composition analysis
You need a different domain or tool outside this scope
Instructions
Clarify goals, constraints, and required inputs.
Apply relevant best practices and validate outcomes.
Provide actionable steps and verification.
If detailed examples are required, open resources/implementation-playbook.md.
Overview
Build the right team at the right time with appropriate compensation and equity. Plan role-by-role hiring aligned with revenue milestones, budget constraints, and market benchmarks.
Team Structure by Stage
Pre-Seed (0-$500K ARR)
Team Size: 2-5 people
Core Roles:
Founders (2-3): Product, engineering, business
First engineer (if needed)
Contract roles: Design, marketing
Focus: Build and validate product-market fit
Seed ($500K-$2M ARR)
Team Size: 5-15 people
Key Hires:
Engineering lead + 2-3 engineers
First sales/business development
Product manager
Marketing/growth lead
Focus: Scale product and prove repeatable sales
Series A ($2M-$10M ARR)
Team Size: 15-50 people
Department Build-Out:
Engineering (40%): 6-20 people
Sales & Marketing (30%): 5-15 people
Customer Success (10%): 2-5 people
G&A (10%): 2-5 people
Product (10%): 2-5 people
Focus: Scale revenue and build repeatable processes
Role-by-Role Planning
Engineering Team
Pre-Seed:
Founders write code
0-1 contract developers
Seed:
Engineering Lead (first $150K-$180K)
2-3 Full-Stack Engineers ($120K-$150K)
1 Frontend or Backend Specialist ($130K-$160K)
Series A:
VP Engineering ($180K-$250K + equity)
2-3 Senior Engineers ($150K-$180K)
3-5 Mid-Level Engineers ($120K-$150K)
1-2 Junior Engineers ($90K-$120K)
1 DevOps/Infrastructure ($140K-$170K)
Sales & Marketing
Pre-Seed:
Founders do sales
Contract marketing help
Seed:
First Sales Hire / Head of Sales ($120K-$150K + commission)
Marketing/Growth Lead ($100K-$140K)
SDR or BDR (if B2B) ($50K-$70K + commission)
Series A:
VP Sales ($150K-$200K + commission + equity)
3-5 Account Executives ($80K-$120K + commission)
2-3 SDRs/BDRs ($50K-$70K + commission)
Marketing Manager ($90K-$130K)
Content/Demand Gen ($70K-$100K)
Product Team
Pre-Seed:
Founder as product lead
Seed:
First Product Manager ($120K-$150K)
Contract designer
Series A:
Head of Product ($150K-$180K)
1-2 Product Managers ($120K-$150K)
Product Designer ($100K-$140K)
UX Researcher (optional) ($90K-$130K)
Customer Success
Pre-Seed:
Founders handle support
Seed:
First CS hire (optional) ($60K-$90K)
Series A:
CS Manager ($100K-$130K)
2-4 CS Representatives ($60K-$90K)
Support Engineer (technical) ($80K-$120K)
G&A (General & Administrative)
Pre-Seed:
Contractors (accounting, legal)
Seed:
Operations/Office Manager ($70K-$100K)
Contract CFO
Series A:
CFO or Finance Lead ($150K-$200K)
Recruiter ($80K-$120K)
Office Manager / EA ($60K-$90K)
Compensation Strategy
Base Salary Benchmarks (US, 2024)
Engineering:
Junior: $90K-$120K
Mid-Level: $120K-$150K
Senior: $150K-$180K
Staff/Principal: $180K-$220K
Engineering Manager: $160K-$200K
VP Engineering: $180K-$250K
Sales:
SDR/BDR: $50K-$70K base + $50K-$70K commission
Account Executive: $80K-$120K base + $80K-$120K commission
Sales Manager: $120K-$160K base + $80K-$120K commission
VP Sales: $150K-$200K base + $150K-$200K commission
Product:
Product Manager: $120K-$150K
Senior PM: $150K-$180K
Head of Product: $150K-$180K
VP Product: $180K-$220K
Marketing:
Marketing Manager: $90K-$130K
Content/Demand Gen: $70K-$100K
Head of Marketing: $130K-$170K
VP Marketing: $150K-$200K
Customer Success:
CS Representative: $60K-$90K
CS Manager: $100K-$130K
VP Customer Success: $140K-$180K
Total Compensation Formula
Total Comp = Base Salary × 1.30 (benefits & taxes) + Equity Value
Fully-Loaded Cost:
Base salary
Payroll taxes (7.65% FICA)
Benefits (health insurance, 401k): $10K-$15K per employee
Other (workspace, equipment, software): $5K-$10K per employee
Rule of Thumb: Multiply base salary by 1.3-1.4 for fully-loaded cost
Geographic Adjustments
San Francisco / New York: +20-30% above benchmarks
Seattle / Boston / Los Angeles: +10-20%
Austin / Denver / Chicago: +0-10%
Remote / Other US Cities: -10-20%
International: Varies widely by country
Equity Allocation
Equity by Role and Stage
Founders:
First founder: 40-60%
Second founder: 20-40%
Third founder: 10-20%
Vesting: 4 years with 1-year cliff
Early Employees (Pre-Seed):
First engineer: 0.5-2.0%
First 5 employees: 0.25-1.0% each
Seed Stage Hires:
VP/Head level: 0.5-1.5%
Senior IC: 0.1-0.5%
Mid-level: 0.05-0.25%
Junior: 0.01-0.1%
Series A Hires:
C-level (CTO, CFO): 1.0-3.0%
VP level: 0.3-1.0%
Director level: 0.1-0.5%
Senior IC: 0.05-0.2%
Mid-level: 0.01-0.1%
Junior: 0.005-0.05%
Equity Pool Sizing
Option Pool by Round:
Pre-Seed: 10-15% reserved
Seed: 10-15% top-up
Series A: 10-15% top-up
Series B+: 5-10% per round
Pre-Funding Dilution:
Investors often require option pool creation before investment, diluting founders.
Example:
Pre-money: $10M
Investors want 15% option pool post-money
Calculation:
Post-money: $15M ($10M + $5M investment)
Option pool: $2.25M (15% × $15M)
Founders diluted by pool creation before new money
Organizational Design
Reporting Structure
Pre-Seed:
Founders (flat structure)
├── Contractors
└── First hires (report to founders)
Seed:
CEO
├── Engineering Lead (2-4 engineers)
├── Sales/Growth Lead (1-2 reps)
├── Product Manager
└── Operations
