Analyzing AngelList Job Postings, Part 2: Salary and Equity Benchmarks

Kazuki

Hatched by Kazuki

Jul 11, 2023

4 min read

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Analyzing AngelList Job Postings, Part 2: Salary and Equity Benchmarks

5-Hour Rule: If you’re not spending 5 hours per week learning, you’re being irresponsible

In today's fast-paced and ever-evolving job market, it's crucial for both employers and employees to understand the benchmarks for salaries and equity in order to make informed decisions. In Part 2 of our analysis of AngelList job postings, we delve into the numbers and explore the danger of generosity when it comes to equity distribution. Additionally, we explore the 5-Hour Rule and its implications for personal and professional growth.

When it comes to equity distribution, it's important to strike a balance between generosity and strategic decision-making. While it may seem like a noble gesture to offer higher equity percentages to early hires, this can have long-term consequences. By giving away too much equity in the early stages, founders risk depleting their resources for future hires, raising capital, and maintaining decision-making power. Therefore, it's crucial to approach equity distribution with caution and consider the long-term implications.

Based on a medium-sized sample of engineering jobs in Silicon Valley, the benchmarks for salaries and equity are as follows:

  • Salaries for employees 2 through 13 range from $75k - $150k, with higher-paying jobs falling in the 50th to 80th percentile range.
  • Equity percentages vary based on the hire number, with the first hire typically receiving 2% - 3% and subsequent hires receiving 0.25% - 1%. Designers among the first four hires may receive up to 1-2% equity, while designers among the next five hires may receive up to 0.5% - 1.0%.

It's important to note that these benchmarks are not hard-and-fast rules, but rather a general guide. Each company and situation may vary, so it's crucial to consider individual circumstances when making equity and salary decisions.

In parallel to the discussion on equity and salaries, the 5-Hour Rule emphasizes the importance of continuous learning in today's knowledge-driven economy. As futurist Peter Diamandis puts it, while goods are becoming demonetized, knowledge is becoming increasingly valuable. The explosion of assets in the world and the democratization of access to knowledge through the internet have created new opportunities for individuals to profit from their unique knowledge.

Knowledge is no longer a luxury but a necessity in the modern era. Those who fail to prioritize learning risk being left behind in an increasingly competitive job market. Just as blue-collar workers faced job losses due to automation, individuals who do not invest in their own knowledge and skills are at risk of being replaced. The problem is not a lack of jobs but a lack of people with the right skills and knowledge to fill those jobs.

The 5-Hour Rule serves as a reminder that investing time in learning is the best investment we can make. By dedicating at least five hours per week to learning, we enhance our knowledge, improve our understanding, and connect ideas in our minds. Sharing knowledge not only strengthens our own understanding but also builds our identity as role models and connects us to communities of like-minded individuals. In essence, knowledge serves as both a medium of exchange and a store of value.

Moreover, the rise of web 3.0 has further accelerated the opportunities for knowledge investors. With platforms like Mirror.xyz, Brave, and Audius, individuals can now gain financial ownership for the value they generate through their knowledge and contributions. Early adopters who possess insider knowledge and can identify emerging trends have the potential to profit significantly.

To become a knowledge investor, one must treat learning as an athlete treats practice. Spending most of the day learning and developing a latticework of mental models are essential habits. Additionally, studying emerging trends and investing time and money in time-bound opportunities can lead to greater returns.

In conclusion, understanding the benchmarks for salaries and equity is crucial for both employers and employees in making informed decisions. Striking the right balance between generosity and strategic decision-making can ensure long-term success. Simultaneously, embracing the 5-Hour Rule and investing in continuous learning is necessary to thrive in today's knowledge-driven economy. By prioritizing knowledge acquisition, individuals can become knowledge investors and unlock new opportunities for financial growth.

Actionable advice:

  • 1. Assess your equity distribution strategy: Consider the long-term implications of generosity in equity distribution. Find the balance between rewarding early hires and preserving resources for future growth.
  • 2. Embrace the 5-Hour Rule: Dedicate at least five hours per week to continuous learning. Prioritize personal and professional growth by investing in knowledge acquisition.
  • 3. Leverage web 3.0 opportunities: Explore platforms that provide financial ownership for knowledge and contributions. Identify emerging trends and become an early adopter to maximize returns on your unique knowledge.

Remember, knowledge is the new currency, and investing in learning is the best investment you can make.

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