How Much Should You Pay a Startup CTO?

Venture Capital

We were recently asked by a friend what a startup CTO's salary should be for a company with little to no revenue.

Peter and Jon decided to ask their network what "fair" compensation would be. Please remember that most individuals were making a recommendation only on partial information.

We presented the following to each individual.

What are the current terms for a Startup CTO?

- He makes $200,000 with $50,000 in equity and other benefits at his current job
- He’s willing to take a salary of $150,000
- The startup just raised $1M from a “notable” VC
- No details on the $1M raise is known
- Revenue is $5,000 MRR or less

The startup is asking him to make an offer.

I told them to put it back on them, and for him to also ask about:

- Total shares outstanding
- Details on the current cap table
- Current price for common stock

Venture Capital Podcast
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Peter Harris
University Growth Fund: https://www.ugrowthfund.com/
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Jon Bradshaw
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