How Startups Can Lure Top Talent Without Big-Tech Salaries
The Pay Gap Widens
Startups have never been able to match Big Tech’s paychecks. Now, with companies like Meta and OpenAI offering million-dollar salaries in the race for AI talent, that gap has grown even wider.
But early-stage startups aren’t doomed. With a generous, fair, and flexible compensation strategy, they can still compete—and even thrive—according to experts who spoke at TechCrunch Disrupt 2025.
Don’t Compete—Redefine the Game
Yin Wu, co-founder and CEO of Pulley, an equity management startup, said startups shouldn’t try to mimic Big Tech’s pay scales.
“A stable tech company and a startup don’t attract the same kind of candidates,” Wu noted.
Instead, she advised startups to be as charitable as possible within their means.
“My pretty strong opinion when it comes to equity for a startup is that you should be more generous than you think,” Wu said. “If the company becomes really successful, you won’t regret giving too much to the people who helped you get there.”
Generosity in early equity can motivate employees to work harder for long-term growth—a valuable tradeoff for lower initial salaries.
Set Clear Expectations and Accountability
Randi Jakubowitz, head of talent at 645 Ventures, agreed with Wu’s emphasis on fairness—but added that clarity and accountability are just as critical.
“When making a competitive offer, set clear goals for the person you’re hiring,” she said.
Jakubowitz stressed the importance of understanding vesting cliffs—the period before employees fully own their equity—and acting quickly if someone underperforms.
“If someone’s underperforming and you don’t move fast, that’s equity you’ll never get back once they’re fully vested,” she warned.
Build Fairness Into the Framework
The panelists agreed that a startup’s compensation structure doesn’t need to be perfect from day one. What matters most is starting fair and building a foundation that can evolve without causing legal or cultural issues later.
For Wu’s company, this meant setting a consistent framework from the start. Pulley pays a set range for each role, regardless of location, and builds packages with equity in the 90th percentile.
“As the company grows, the value of the shares changes, but the framework remains,” Wu explained. “That consistency helps us grow responsibly.”
Fair Pay Prevents Future Problems
Rebecca Lee Whiting, founder of Epigram Legal and fractional general counsel, added that clear compensation standards also protect startups legally.
Pay transparency and fairness help avoid issues like gender pay gaps, which are not only unethical but also illegal in many regions, including California.
“Having these standards from the start helps you avoid future legal pitfalls,” Whiting said.
Fairness and Flexibility Win
Whiting, Wu, and Jakubowitz all agreed on one thing: startups shouldn’t obsess over perfecting compensation policies early on. Instead, they should hire with fair intentions and stay flexible as they grow.
“It’s not something you have to get right out of the gate,” Whiting said. “You’ll likely have to revisit it post–Series B — and that’s okay.”
Ultimately, startups can’t (and shouldn’t) try to outspend Big Tech. What they can do is build a culture of transparency, fairness, and shared success—one that attracts mission-driven people who care about more than just the paycheck.
