Is 1% equity good for a CTO?
At Seed stage, 1% is within the normal range for a hired (non-founder) CTO. At Series A, you'd expect less. Context matters: company valuation, option pool size, and your salary offset all factor in.
CTOs at early-stage startups typically receive between 1–5% equity at Seed stage, declining to 0.5–2% at Series A. Use this calculator to see if your package is competitive and what your equity could be worth at exit.
Compare against market benchmarks
At Pre-Seed, CTO co-founders often hold 5–15%+. Hired CTOs at Seed stage typically receive 1–3% with salary between £80k–£130k in London. By Series A, equity drops to 0.5–1.5% as valuation increases. The key is total package value: salary plus expected equity value at your company's realistic exit scenarios.
Early-stage CTOs often accept below-market salary for higher equity. A £95k salary with 2% at a £8m Seed valuation implies £160k paper equity — meaningful if the company 10x's. Model your scenarios below.
At Seed stage, 1% is within the normal range for a hired (non-founder) CTO. At Series A, you'd expect less. Context matters: company valuation, option pool size, and your salary offset all factor in.
Equity value = your ownership percentage × company valuation. For options, subtract your strike price from the per-share exit value to calculate gain.
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