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Hard coded data
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I) Cap table
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Post-money valuation (Seed)
 £ 10,000,000
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# Shares% ownership
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Founders 15,000 68%
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ESOP 2,300 10%
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Investors 4,700 21%
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Total 22,000 100%
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II) Compensation framework
Sources
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Step 1Company valuation
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 £ 10,000,000
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Step 2Define salary multiple
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RangeLowestHighestSource: Balderton
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Senior team (C-Level - people who report to the CEO)👉0.7X2X
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Director or Junior VP0.5X1.0X
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Key hires (Designers, Data Scientists, Sales people - hard to hire and hard to retain)
0.3X0.7X
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Other0.0X0.2X
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Step 3
Determine market comp salary (Note: this is NOT what you are going to pay the new CMO)
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Annual salary CMO £ 102,000 Benchmark: CMO salaries in London
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Discretionary Discount0%
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Salary £ 102,000
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Step 4
Determine the pound value that you are going to give in equity (multiple of annual salary)
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 Option 1 (0.7X) £ 71,400
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👉 Option 2 (1X) £ 102,000
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 Option 3 (2X) £ 204,000
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Step 5# of outstanding shares 22,000
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Step 6Price per share value £ 455
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Step 7# of shares that should be given to your new CMO224
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% ownership for a new CMO1.02%
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