— name: team-composition-analysis description: Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A. Use this skill when planning headcount, determining which roles to hire next, setting compensation or equity ranges, designing org structure, or building a hiring budget aligned to funding milestones. version: 1.0.0 — # Team Composition Analysis Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A. ## Overview Build the right team at the right time with appropriate compensation and equity. Plan role-by-role hiring aligned with revenue milestones, budget constraints, and market benchmarks. ## Team Structure by Stage ### Pre-Seed (0-$500K ARR) **Team Size: 2-5 people** **Core Roles:** – Founders (2-3): Product, engineering, business – First engineer (if needed) – Contract roles: Design, marketing **Focus:** Build and validate product-market fit ### Seed ($500K-$2M ARR) **Team Size: 5-15 people** **Key Hires:** – Engineering lead + 2-3 engineers – First sales/business development – Product manager – Marketing/growth lead **Focus:** Scale product and prove repeatable sales ### Series A ($2M-$10M ARR) **Team Size: 15-50 people** **Department Build-Out:** – Engineering (40%): 6-20 people – Sales & Marketing (30%): 5-15 people – Customer Success (10%): 2-5 people – G&A (10%): 2-5 people – Product (10%): 2-5 people **Focus:** Scale revenue and build repeatable processes ## Role-by-Role Planning ### Engineering Team **Pre-Seed:** – Founders write code – 0-1 contract developers **Seed:** – Engineering Lead (first $150K-$180K) – 2-3 Full-Stack Engineers ($120K-$150K) – 1 Frontend or Backend Specialist ($130K-$160K) **Series A:** – VP Engineering ($180K-$250K + equity) – 2-3 Senior Engineers ($150K-$180K) – 3-5 Mid-Level Engineers ($120K-$150K) – 1-2 Junior Engineers ($90K-$120K) – 1 DevOps/Infrastructure ($140K-$170K) ### Sales & Marketing **Pre-Seed:** – Founders do sales – Contract marketing help **Seed:** – First Sales Hire / Head of Sales ($120K-$150K + commission) – Marketing/Growth Lead ($100K-$140K) – SDR or BDR (if B2B) ($50K-$70K + commission) **Series A:** – VP Sales ($150K-$200K + commission + equity) – 3-5 Account Executives ($80K-$120K + commission) – 2-3 SDRs/BDRs ($50K-$70K + commission) – Marketing Manager ($90K-$130K) – Content/Demand Gen ($70K-$100K) ### Product Team **Pre-Seed:** – Founder as product lead **Seed:** – First Product Manager ($120K-$150K) – Contract designer **Series A:** – Head of Product ($150K-$180K) – 1-2 Product Managers ($120K-$150K) – Product Designer ($100K-$140K) – UX Researcher (optional) ($90K-$130K) ### Customer Success **Pre-Seed:** – Founders handle support **Seed:** – First CS hire (optional) ($60K-$90K) **Series A:** – CS Manager ($100K-$130K) – 2-4 CS Representatives ($60K-$90K) – Support Engineer (technical) ($80K-$120K) ### G&A (General & Administrative) **Pre-Seed:** – Contractors (accounting, legal) **Seed:** – Operations/Office Manager ($70K-$100K) – Contract CFO **Series A:** – CFO or Finance Lead ($150K-$200K) – Recruiter ($80K-$120K) – Office Manager / EA ($60K-$90K) ## Compensation Strategy ### Base Salary Benchmarks (US, 2024) **Engineering:** – Junior: $90K-$120K – Mid-Level: $120K-$150K – Senior: $150K-$180K – Staff/Principal: $180K-$220K – Engineering Manager: $160K-$200K – VP Engineering: $180K-$250K **Sales:** – SDR/BDR: $50K-$70K base + $50K-$70K commission – Account Executive: $80K-$120K base + $80K-$120K commission – Sales Manager: $120K-$160K base + $80K-$120K commission – VP Sales: $150K-$200K base + $150K-$200K commission **Product:** – Product Manager: $120K-$150K – Senior PM: $150K-$180K – Head of Product: $150K-$180K – VP Product: $180K-$220K **Marketing:** – Marketing Manager: $90K-$130K – Content/Demand Gen: $70K-$100K – Head of Marketing: $130K-$170K – VP Marketing: $150K-$200K **Customer Success:** – CS Representative: $60K-$90K – CS Manager: $100K-$130K – VP Customer Success: $140K-$180K ### Total Compensation Formula “` Total Comp = Base Salary × 1.30 (benefits & taxes) + Equity Value “` **Fully-Loaded Cost:** – Base salary – Payroll taxes (7.65% FICA) – Benefits (health insurance, 401k): $10K-$15K per employee – Other (workspace, equipment, software): $5K-$10K per employee **Rule of Thumb:** Multiply base salary by 1.3-1.4 for fully-loaded cost ### Geographic Adjustments **San Francisco / New York:** +20-30% above benchmarks **Seattle / Boston / Los Angeles:** +10-20% **Austin / Denver / Chicago:** +0-10% **Remote / Other US Cities:** -10-20% **International:** Varies widely by country ## Equity Allocation ### Equity by Role and Stage **Founders:** – First founder: 40-60% – Second founder: 20-40% – Third founder: 10-20% – Vesting: 4 years with 1-year cliff **Early Employees (Pre-Seed):** – First engineer: 0.5-2.0% – First 5 employees: 0.25-1.0% each **Seed Stage Hires:** – VP/Head level: 0.5-1.5% – Senior IC: 0.1-0.5% – Mid-level: 0.05-0.25% – Junior: 0.01-0.1% **Series A Hires:** – C-level (CTO, CFO): 1.0-3.0% – VP level: 0.3-1.0% – Director level: 0.1-0.5% – Senior IC: 0.05-0.2% – Mid-level: 0.01-0.1% – Junior: 0.005-0.05% ### Equity Pool Sizing **Option Pool by Round:** – Pre-Seed: 10-15% reserved – Seed: 10-15% top-up – Series A: 10-15% top-up – Series B+: 5-10% per round **Pre-Funding Dilution:** Investors often require option pool creation before investment, diluting founders. **Example:** “` Pre-money: $10M Investors want 15% option pool post-money Calculation: Post-money: $15M ($10M + $5M investment) Option pool: $2.25M (15% × $15M) Founders diluted by pool creation before new money “` ## Organizational Design ### Reporting Structure **Pre-Seed:** “` Founders (flat structure) ├── Contractors └── First hires (report to founders) “` **Seed:** “` CEO ├── Engineering Lead (2-4 engineers) ├── Sales/Growth Lead (1-2 reps) ├── Product Manager └── Operations “` **Series A:** “` CEO ├── CTO / VP Engineering (6-20 people) │ ├── Engineering Manager(s) │ └── Individual Contributors ├── VP Sales (5-15 people) │ ├── Sales Manager │ ├── Account Executives │ └── SDRs ├── Head of Product (2-5 people) │ ├── Product Managers │ └── Designers ├── Head of Customer Success (2-5 people) └── CFO / Finance Lead (2-5 people) ├── Recruiter └── Operations “` ### Span of Control **Manager Ratios:** – First-line managers: 4-8 direct reports – Directors: 3-5 direct reports (managers) – VPs: 3-5 direct reports (directors) – CEO: 5-8 direct reports (executive team) ## Full-Time vs. Contract ### Use Full-Time for: – Core product development – Sales (revenue-generating roles) – Mission-critical operations – Institutional knowledge roles ### Use Contractors for: – Specialized short-term needs (legal, accounting) – Variable workload (design, marketing campaigns) – Skills outside core competency – Testing role before FTE hire – Geographic expansion before permanent presence ### Cost Comparison **Full-Time:** – Lower hourly cost – Benefits and overhead – Long-term commitment – Cultural fit matters **Contract:** – Higher hourly rate ($75-$200/hour vs. $40-$100/hour FTE equivalent) – No benefits or overhead – Flexible engagement – Easier to scale up/down ## Hiring Velocity ### Realistic Timeline **Role Opening to Hire:** – Junior: 6-8 weeks – Mid-Level: 8-12 weeks – Senior: 12-16 weeks – Executive: 16-24 weeks **Time to Productivity:** – Junior: 4-6 months – Mid-Level: 2-4 months – Senior: 1-3 months – Executive: 3-6 months ### Planning Buffer Always add 2-3 months buffer to hiring plans. **Example:** If need engineer by July 1: – Start recruiting: April 1 (12 weeks) – Productivity: September 1 (2 months ramp) ## Budget Planning ### Compensation as % of Revenue **Early Stage (Seed):** – Total comp: 120-150% of revenue (burning cash to grow) – Engineering: 50-60% – Sales: 30-40% – Other: 20-30% **Growth Stage (Series A):** – Total comp: 70-100% of revenue – Engineering: 35-45% – Sales: 25-35% – Other: 20-30% ### Headcount Budget Formula “` Total Comp Budget = Σ (Role Count × Fully-Loaded Cost × % of Year) Example: 3 Engineers × $202K × 100% = $606K 2 AEs × $230K × 75% (mid-year start) = $345K 1 PM × $162K × 100% = $162K Total: $1.1M “` ## Quick Start To plan team composition: 1. **Identify stage** – Pre-seed, seed, or Series A 2. **Define roles** – What functions are needed now 3. **Prioritize hires** – Critical path for business goals 4. **Set compensation** – Base salary + equity by level 5. **Plan timeline** – Account for recruiting and ramp time 6. **Calculate budget** – Fully-loaded cost × headcount 7. **Design org chart** – Reporting structure and span of control 8. **Allocate equity** – Fair allocation that preserves pool