tomtunguz.com · 2014-11-04
· 4230d
Why Series A Startup Founder CEO Equity Stakes Have Grown 40% in Five Years
Analysis of venture-backed CEO equity compensation trends showing median founder equity stakes at Series A have increased from 15% to 21% over five years, driven primarily by a rise in single-founder companies rather than valuation expansion. The trend does not extend to VP-level founders or later-stage companies, suggesting structural shifts in founding team composition. The author attributes this pattern to broader growth in US entrepreneurship and the viability of solo-founder ventures across all outcomes.
Metrics in this report
Founder CEO Equity Stake (Series A, Median)
21percent
median
US venture-backed companies post-Series A, 2014
Founder CEO Equity Stake (Series A, Median)
15percent
median
US venture-backed companies post-Series A, 2009 (five years prior)
Founder CEO Equity Stake Growth
40percent
relative increase
US venture-backed Series A companies, 2009-2014