MKT1 Seed & Series A Marketing Comp

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3	MKT1 SEED & SERIES A MARKETING BENCHMARKS - FEBRUARY 2022
4			% Ownership (Shares Granted / Total Shares Outsanding)
5	Level & average years of experience	Bay Area & NYC Salary*	Low Equity	Typical Equity	High Equity
6	Level & average years of experience	Bay Area & NYC Salary*	Typical at Series A, Low at Seed	At seed and Series A with ~<$100M valuations	Expect only at Seed
7	Junior	$80,000 - $120,000	0.03%	0.07%	0.20%	*Note rows 7 & 8 updated since published based on feedback
8	1-3 years	$80,000 - $120,000	0.03%	0.07%	0.20%
9	Mid / Manager / Lead	$110,000 - $160,000	0.10%	0.25%	0.40%
10	3-7 years	$110,000 - $160,000	0.10%	0.25%	0.40%
11	Senior / Director / Head of	$140,000 - $210,000	0.20%	0.50%	0.80%
12	5-10+ years	$140,000 - $210,000	0.20%	0.50%	0.80%
13	VP/Head of	$175,000 - $240,000	0.40%	0.80%	1.25%
14	7-12+ years	$175,000 - $240,000	0.40%	0.80%	1.25%
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16	How to use: Please refer to our newsletter to make sense of this
17	*Salary Note: We are not including bonus here because we don't recommend or see this frequently at early stages
18	*Salary Note 2: We don't have enough data to do other locations, and not all startups do location adjustments, but there are calculators to convert salary city by city.
19	^Equity Note: We recommend using % ownership to benchmark at Seed and Series A, and current value at Series B and later.
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22	CURRENT VALUE EQUITY BENCHMARKS FOR EARLY-STAGE HEAD OF MARKETING
23		% Ownership
24	Post-Money Valuation	0.25%	0.50%	0.75%	1%		For Head of Marketing at Seed & A:
25	$15,000,000	$37,500	$75,000	$112,500	$150,000		In Range
26	$25,000,000	$62,500	$125,000	$187,500	$250,000		Out of Range
27	$50,000,000	$125,000	$250,000	$375,000	$500,000		Unacceptable
28	$75,000,000	$187,500	$375,000	$562,500	$750,000		Unlikely/Really High
29	$100,000,000	$250,000	$500,000	$750,000	$1,000,000
30	$150,000,000	$375,000	$750,000	$1,125,000	$1,500,000
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32	How to use: Valuations impact what equity you will be offered (the higher the valuation, the lower your equity % will likely be). This chart shows how % ownership, post-money valuation, and notional value are related, and what currentl values are in range for a Head of Marketing.
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36	Current Market Value = Preferred Price at latest round * Number of Shares Granted
37	If you don't have preferred price, use formula: Preferred price = Post-money valuation / total shares outsanding
38	Note: you can adjust the % ownership ranges and post-money valuations to get a better sense of current value ranges for your role
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42	CALUCATING THE "VALUE" OF YOUR EQUITY OFFER
43	Thing	Number	Where to find	Notes
44	Shares granted	75,000	In offer	Typically vests over 4 years with 1 year cliff			Type in
45	Post-Money Valuation	$75,000,000	Ask for	Post-money valuation at last round (not pre-money)			Formula - Don't touch!
46	Preferred price at last round	$3	Ask for or calculate	Preferred price = post-money valuation/shares outstanding
47	Strike price	$0.50	In offer	aka exercise price or FMV
48	Current value per share	$2.5	Formula	Preferred price - strike price (only important if high exercise cost)
49	% Ownership	0.60%	Ask for or calculate	% ownership = Shares granted / total shares outstanding. Compare this to benchmarks.
50	Total Shares outstanding	12,500,000	Ask for if needed	Not important if you have % ownership
51	Current Current "Market" Value of Equity	$225,000	Formula	Preferred Price at latset round * Number of Shares Granted. Use as secondary benchmark (use chart above)
52	Current Current "Market" Value of Equity - Exercise Price	$187,500	Formula	Value at today's preferred price minus the cost you'd pay to exercise options.
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54	How to use: Use this as a calculator to get the equity benchmarks you need. Then compare benchmarks to top 2 charts.
55	Note: You may need to update some of the formulas depending on the data points you have
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59	HYPOTHETICAL EXIT VALUES
60	Comp For this Role		Exit Value Calculations
61	Equity - %	Equity - Current Value	Valuation at Exit	Number of Future Rounds	~Dilution % / Round	Exercise Cost	You'd get approx...
62	0.60%	$225,000	$500,000,000	5	15.00%	$37,500	$1,293,616
63			$1,000,000,000				$2,624,732
64			$5,000,000,000				$13,273,659
65			$10,000,000,000				$26,584,819
66	Note: These are pulled in from the Equity % and current value in calculator above, you can paste them in too		Add in whatever exit values you want, dream big.	This impacts the total dilution from future fundraising rounds. For Seed & Series A use 5-6.	Everytime there's a round your % changes. 15-20% is an estimate of dilution per round.	Pulls in from above	Major approximation. Depends on rounds, dilution, liquidiation preferences, vesting, taxes, etc. etc.
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73	EXAMPLE OFFERS
74	Title	Stage	Valuation at Hire	Salary	Equity %	Equity Current "Market" Value	Notes
75	VP of Marketing	Series A	$60,000,000	$190,000	0.50%	$300,000	Reasonable offer, should push equity or salary up in negotiatons
76	Head of Marketing/Director	Seed	$15,000,000	$150,000	0.75%	$112,500	Current value a bit low, but calculation not as useful at seed. High % ownership, so if you pick a winner this is a good offer.
77	Head of Marketing/Director	Series A	$100,000,000	$175,000	0.40%	$400,000	% ownership on low end (likely since the valuation is on the higher side), but current value is fair/high.
78	Head of Marketing/Director	Series A	$50,000,000	$225,000	0.40%	$200,000	High salary, lowish equity in terms of current
79	Marketing Lead	Seed	$25,000,000	$150,000	0.40%	$100,000	Salaries tend to be about equaly for senior marketers at seed regardless of level, equity changes
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81	Note: This chart is just to show some example offers for heads of marketing roles. All of these offers are reasonable. We are trying to illustrate that lower ownership %s doesn't necessarily mean "bad offer".
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83	Some fine print
84	This data is based on aggregated and anonymized data and may not be statistically signficant. Take it with some grains of salt.
85	This is not financial advice either.
86	This was last updated in February 2022
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