The Equity Hierarchy at Startups

At Series A–C startups, equity grants follow a clear hierarchy based on how leveraged the role is to company outcomes. Software engineers receive the largest grants (they build the product). Product managers and designers receive less. Sales leaders receive smaller grants but earn more through commission-based variable comp.

Key insight: Your equity grant should be evaluated against salary, not in isolation. A grant whose potential exit value reaches 1× or more of annual salary is strong; 0.5–1× is typical.

Software Engineer

0.05% – 0.30%
Typical: 0.10% – 0.20%
Senior engineers at Series A commonly get 0.10–0.20%. Staff/Principal engineers can reach 0.25–0.30%. Junior engineers receive 0.05–0.10%.

Product Manager

0.03% – 0.15%
Typical: 0.05% – 0.10%
First PM at Series A: 0.08–0.15%. Later PM hires: 0.05–0.10%. PMs with more scope (owning roadmap, team) should negotiate toward the higher end.

Product Designer

0.03% – 0.12%
Typical: 0.05% – 0.08%
Founding designer (first design hire, pre-product): 0.08–0.12%. Later designers at companies with established design systems: 0.03–0.06%.

Sales Leader / First Sales

0.02% – 0.10%
Typical: 0.04% – 0.08%
VP Sales / first sales hire at Series A: 0.06–0.10%. Account executives: 0.02–0.05%. Sales comp is equity + commission; total comp often exceeds engineers.

Marketing Leader

0.02% – 0.08%
Typical: 0.03% – 0.06%
First marketing hire / VP Marketing at Series A: 0.05–0.08%. Later marketing hires: 0.02–0.04%. Equity often lower than PM/engineer roles.

Data Scientist / Analyst

0.04% – 0.15%
Typical: 0.06% – 0.12%
Data scientists at product-driven companies can approach engineer levels (0.08–0.15%). Analytics-focused roles receive less (0.04–0.08%).

Series A Comparison Table

Role Equity Range Typical Grant Negotiation Notes
Senior Software Engineer 0.08% – 0.25% 0.15% High leverage if building core product. Negotiate toward 0.20%+ if senior/staff.
Product Manager (first PM) 0.05% – 0.15% 0.08% Scope matters. First PM shaping roadmap should get 0.10%+.
Product Designer (founding) 0.05% – 0.12% 0.07% First designer pre-product: negotiate toward 0.10%+.
VP Sales / First Sales 0.04% – 0.10% 0.06% Equity is lower, but commission structure can make total comp higher.
Marketing Lead 0.02% – 0.08% 0.04% Often the lowest equity tier. Negotiate if pre-PMF / building growth from scratch.
Junior Software Engineer 0.03% – 0.10% 0.05% Room to grow with leveling. Can negotiate for refresh grants.

Why Engineers Get More Equity

At early-stage startups, software engineers are the highest-leverage role. The product IS the code. A senior engineer can materially impact whether the company ships, and that leverage justifies larger grants.

Product managers and designers are critical for what to build and how it looks/feels, but their leverage is more indirect. Sales leaders have direct revenue impact but are compensated through commission structures.

The Commission Tradeoff: Sales vs. Engineering

Sales roles typically receive smaller equity grants than engineers, but their total compensation is often higher due to commission. A VP Sales might get 0.06% equity but earn $200k+ in commission at $1M ARR.

Engineers rarely have commission-like variable comp, so their equity grant needs to carry more weight. When negotiating, compare the grant's potential exit value to your total cash comp.

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Frequently Asked Questions

Do software engineers get more equity than PMs at startups?
Yes, typically. Software engineers at Series A–C startups commonly receive 0.05–0.3% ownership, while product managers receive 0.03–0.15%. Designers are similar to PMs. Sales leaders often receive smaller equity grants (0.02–0.1%) but earn significantly more through commission-based variable comp. The exact grant depends on seniority, leverage, and how critical the role is to the product.
How much equity should a first product manager get at a Series A startup?
A first PM at Series A typically receives 0.05–0.15% ownership, often 15,000–40,000 options depending on share count. A grant whose reasonable-exit value reaches 0.5–1× of annual salary is fair. If you're joining pre-product or as the first PM, negotiate toward the higher end — your scope impacts every dollar the company earns.
Do sales roles get equity at startups?
Yes, but the mix is different. Sales leaders (VP Sales, first sales hire) receive equity grants of 0.02–0.1%, smaller than engineering roles, but their total comp is often higher due to commission structures tied to bookings. Earlier sales hires (pre-PMF, building the motion from scratch) should negotiate toward the larger end of the equity range.
What's a fair equity grant for a startup designer?
Startup designers typically receive 0.03–0.12% ownership at Series A–C, slightly below engineers. If you're a founding designer (first design hire, pre-product, shaping the entire UX), negotiate toward 0.1%+ — your work defines the customer experience. Later-stage hires at companies with established design systems receive less.
How do I negotiate equity as a non-engineer?
Frame your impact in dollars, not features. For PMs: "I'll own the roadmap that drives $X in ARR." For sales: "I'll build the sales motion that closes the first 100 customers." For designers: "I'll design the onboarding that improves conversion by Y%." Use the AI Offer Verdict to run your exact numbers and compare the potential exit value to your salary. If it's below 0.5×, ask for more equity or a higher base.

Related Resources

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