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Surprising Trends in Startup Founder Equity Stakes

Tom Tunguz

Earlier this week, I wrote about the increase in cash compensation and decline in equity grants to VPs of Engineering and Product in startups. On average, founders retain 30-33% more equity than 4 years ago through those first two rounds of institutional investment. The chart above shows the trends in four graphs.

Trends 100
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SaaStr Podcast #356 with Atrium Co-Founder Pete Kazanjy

SaaStr

Something that we did really poorly at TalentBin early on was not really focusing on a very crisply defined ICP and insufficiently investing in customer success. Like a VP of engineering would go to some conference, and hear someone on stage talking about how they need to be spending all their time doing recruiting, etc, etc.