Startup salaries in 2026: What to pay from seed to Series C

The startup compensation question isn't just "what should we pay?" – it's "what can we afford to pay while still competing for talent?"

Early-stage companies operate with limited cash and uncertain runways, making every salary decision a trade-off between attracting talent and extending survival.

Meanwhile, late-stage startups are starting to compete with established tech companies for talent.

Where you sit on that spectrum – seed stage scrappiness or Series C polish – fundamentally shapes your compensation strategy.

This guide breaks down what startup salaries actually look like in 2026, using data from Ravio's latest Compensation Trends report – including how salaries change across funding stages, with advice on how to use this data to build a strategic approach to employee compensation.

Startup salary benchmarks: What to pay across funding stages

To understand what competitive startup compensation looks like, we analysed our salary benchmarks for three core roles – Software Engineer, Product Manager, Account Executive (Direct Sales) – at two levels of seniority – mid-level (P3) and senior manager (M3) – across early-stage (pre-seed/seed), growth-stage (Series A/B), and late-stage (Series C+/IPO) startups.

All data reflects UK market rates in 2026.

Mid-level startup salaries (P3) across funding stages

For mid-level roles, late-stage startups pay around 3-8% more than early-stage startups (source: Ravio Compensation Trends 2027).

The gap between early and late-stage pay at mid-level has narrowed sharply – last year, late-stage startups paid 14-18% more. For Account Executives, growth-stage companies now pay slightly more than late-stage companies.

Senior startup salaries (M3) across funding stages

For senior roles, the premium as startups scale is much more pronounced.

Late-stage startups pay 14-28% more than early-stage startups for Senior Managers – still several times the premium seen at mid-level (source: Ravio Compensation Trends 2027).

That's a £13,000-£29,000 difference in annual salary between early and late stage for senior leaders – reflecting both the resources available at later stages and the increased complexity of leading teams at scale.

Startup salary trends: Early-stage startups are closing the gap

In 2025, salary growth converged across funding stages. In 2026, the pattern changed again: at mid-level, early-stage startups saw the fastest salary growth of any stage, across all three roles (source: Ravio Compensation Trends 2027).

Senior manager pay also grew fastest at early and growth stage (15-26%), so the senior gap is narrowing too.

Daniel Illes, Portfolio Talent Director at Atomico, has seen the same shift in early-stage pay.

"There used to be a real ceiling on cash comp by stage, but I'm now seeing seed-stage salaries that compete with Series B," he says.

"It's partly a hot VC market, and partly a conviction you can build a company with far fewer people who are compensated accordingly."

What this means for your compensation strategy: if you're early-stage, last year's benchmarks may already be out of date for mid-level hires – the market at your stage moved faster than anywhere else. If you're late-stage, your pay advantage is shrinking at every level, and you may need to look at other levers to remain competitive for the talent you need.

The total compensation picture: Equity, variable pay, and pay rises in star

Salary benchmarks tell only part of the compensation story. For startups, the total compensation package (equity, benefits, culture) often matters as much as base pay.

Startup equity compensation

Equity compensation is where startups often differentiate, offering employees ownership and potential for significant financial upside if the company succeeds.

For early-stage employees especially, equity represents a calculated bet: accepting a high-risk job with a potentially lower salary now, in exchange for shares that could become valuable as the company scales and raises at higher valuations.

The UK leads Europe on equity for all: 58% of UK tech companies offer equity to all employees, compared with 39% across Europe (source: Ravio Compensation Trends 2027).

At early stage specifically, Daniel Illes is seeing equity eligibility broaden again.

"Valuations are high, so there's equity to give away in terms of £ value, and startups also aren't planning to hire hundreds of people down the line in the same way they used to, so the dilution worry is lower," he says.

And employees are starting to value it more.

"With more secondaries happening, candidates and employees are seeing real value in equity now," says Leah Sutton, Chief Portfolio Talent Officer at Balderton Capital. "Suddenly someone they know took money off the table, and it clicks that equity is actually real, so they're optimising for it."

Variable pay and pay rises by funding stage

Variable pay peaks in the middle of the funding journey. Growth-stage companies offer the largest median variable component (14.2% of base salary), ahead of early-stage (11.5%) and late-stage (11.1%) (source: Ravio Compensation Trends 2027).

On pay rises, early and growth-stage companies gave the biggest typical in-role increase in 2026 (5.0%), while late-stage companies gave 4.0%.

Benefits and flexible working

Benefits are one of the few places a startup can compete with bigger companies without matching their cash – but what's standard is shifting.

Personalisation is the trend most relevant to startups.

With small teams and very different needs, a flexible allowance is often easier to run than a long menu of perks.

Petra Skoglund, Strategic HR Advisor, thinks that's where mature companies end up. "Many companies are way too fixed, looking blindly at the sum benefits value per employee, when they should be looking at the experience of each individual," she says. "A mature company moves towards an experience-based approach to benefits rather than one-size-fits-all."

Flexible working is still the benefit most startups lead with: hybrid is offered by 72-96% of European tech companies, depending on the country.

But the picture is narrowing – fewer companies offer multiple working models than last year, and 17% of hybrid companies plan to move towards more office time, compared with 4% moving towards more flexibility.

Petra has seen what happens when companies push too far. "Some companies tried going back to fully on-site and failed – and some of their best people left because they simply couldn't work like that – so now there's this settling around hybrid flexibility," she says.

One lesson from our Reward Hours session on building a benefits strategy: benefits programmes usually accumulate through hiring pushes rather than being designed, and it's much easier to add a benefit than to take one away. Before adding a perk to win a hire, ask whether you'd still offer it if you were starting from scratch.

How does the startup talent market differ by funding stage?

Early-stage startups are hiring the most, but also seeing the most movement (source: Ravio Compensation Trends 2027):

• Highest hiring rate: early-stage companies had the highest hiring rate of any funding stage in 2026 (25.0%).
• Highest attrition: early-stage attrition was 12.1%, compared with 10.5% at late stage.
• Shortest tenure: early-stage companies used to have the longest average tenure, but now have the shortest (688 days, about 1 year 11 months).

"There's much more movement happening at early startups right now, because there are so many exciting new AI products for people to jump to," says Elena Pantazi, Head of Talent & Portfolio Development at Northzone

What does this data mean for your startup compensation strategy?

We’ve seen some clear patterns in the data: salaries increase substantially from seed to Series C (especially for senior roles), early-stage mid-level pay is catching up fast, and equity is increasingly being seen as real value.

Here's how to use these insights to make better decisions for your startup.

Choose your target percentile strategically

The default "pay everyone at 50th percentile" rarely makes sense for startups. Your compensation positioning should reflect your constraints and what you're competing on – which likely means changing your target percentile as you grow.

Most companies (63%) still target the market median for base salaries. But small companies are much more likely to pay above it – 18% of companies with under 100 employees target the 75th percentile, compared with 12% overall (source: Ravio Compensation Trends 2027).

Alexandra Stoica, Head of People, isn't surprised. "Your first 50 employees make or break your company. It's not a general 9-to-5 role – people go above and beyond, take a chance on you as much as you take a chance on them – and that extra effort needs to be rewarded," she says.

But be deliberate about it. "Early on, companies throw money at the people they need – it’s a gut-feeling, get this person now approach," says Carolin Schneider, People & Culture Strategist at The ppl.Kickstarter. "That comes back to bite you later, when employees start asking uncomfortable questions and you need to bring in structure and consistency on top of all those ad hoc decisions."

→ Read: How to create a compensation philosophy
→ Read: Complete guide to salary benchmarking
→ Read: Market-driven vs market-informed compensation
→ Read: Startup compensation guide

Compete on total compensation, not just salary

Equity structures, flexibility, and benefits are all incredibly important for startup compensation.

For startups competing on culture rather than cash, these benefits align naturally with what makes startup environments attractive – a focus on autonomy, growth, and impact.

And with more secondaries giving employees a way to realise value before an exit, equity is becoming a more credible part of the offer again.

But with 58% of UK companies offering equity to all employees, it isn't a differentiator on its own – what matters is how clearly you communicate its potential value.

→ Read: Employee benefits trends
→ Read: How to decide on flexible working policies

→ Read: The complete guide to startup equity compensation

Budget realistically for your funding stage

Startup funding isn’t as easy as it once was, and employee costs will always make up a big chunk of your overall budget – especially for tech startups.

Therefore, hiring has to be strategic and intentional.

We’re seeing this most with AI-native startups who are deliberately keeping their teams lean – fewer employees, but top talent powered by AI tooling – but there are learnings for all startups to consider.

→ Read: How to set annual compensation budgets
→ Read: What every startup can learn from AI-native hiring

Use reliable data to make defensible decisions

"Finger in the air" salary decisions create problems that compound as you scale. Inconsistencies become inequities. Overpaying strains budgets. Underpaying drives attrition.

Access to reliable, relevant, real-time benchmarking data is foundational.

It enables you to set offers confidently, plan budgets accurately, maintain internal equity, and refresh strategy as markets shift.

FAQs

How much do startups pay?

It depends on the role and the funding stage. In the UK, mid-level (P3) salaries at startups range from £58,900 for an Account Executive at an early-stage company to £76,100 for a Software Engineer at a late-stage company, and senior manager (M3) salaries range from £92,600 to £131,500 (UK medians, 2026; source: Ravio Compensation Trends 2027).

How much do startups pay at seed, Series A and Series C?

For a mid-level Software Engineer in the UK, the median salary is £70,800 at early-stage companies (pre-seed and seed), £73,900 at growth-stage companies (Series A and B) and £76,100 at late-stage companies (Series C and beyond). For a Senior Engineering Manager, it's £108,400, £129,200 and £131,000 across the same three stages (UK medians, 2026; source: Ravio Compensation Trends 2027). See our guides to Software Engineer salaries, Product Manager salaries and tech sales salaries for other roles.

Do startups pay well?

It depends on the stage, but the gap with later-stage companies has narrowed sharply. For mid-level roles, early-stage startups now pay around 3-8% less than late-stage startups, compared with 14-18% less a year earlier, and early-stage startups saw the fastest salary growth of any stage in 2026 (source: Ravio Compensation Trends 2027). The bigger gap is for senior roles, where late-stage startups pay 14-28% more than early-stage ones.

Do later-stage startups pay more than early-stage startups?

Yes, and the premium is much bigger for senior roles. For mid-level roles, late-stage startups pay around 3-8% more than early-stage startups. For senior managers, they pay 14-28% more, a difference of £13,000 to £29,000 a year (UK medians, 2026; source: Ravio Compensation Trends 2027). For Account Executives, growth-stage companies now pay slightly more than late-stage ones.

Are startup salaries going up?

Yes, and early-stage startups are seeing the fastest growth. In 2026, mid-level salaries at early-stage companies rose 12.6% for Software Engineers, 9.3% for Product Managers and 23.7% for Account Executives, against 5.0%, 3.7% and 7.6% at late-stage companies. The median in-role pay rise was 5.0% at early and growth-stage companies and 4.0% at late-stage companies (source: Ravio Compensation Trends 2027).

Do startups offer equity to all employees?

In the UK, mostly yes: 58% of tech companies offer equity to all employees, compared with 39% across Europe (source: Ravio Compensation Trends 2027). That makes equity less of a differentiator on its own, so how clearly you explain its potential value matters. See our complete guide to equity compensation for startups.

How much equity should you get at a startup?

It depends on the role, seniority, company stage and how much risk you're taking on. For early hires, grants are typically in the range of 0.1-2% of the company, depending on seniority and stage. Ravio's equity benchmarking data gives market reference points by role, level and funding stage. For the full breakdown, see our complete guide to equity compensation for startups.

How much equity do you get at Series A, B or C?

How equity is given changes as a company grows. Early hires at seed and Series A often receive a percentage of the company, while at growth and late stage, grants are more commonly expressed as a percentage of base salary or a fixed monetary value. In Europe, the most common option pool is 10-15% of the company, and early-stage companies are advised to hold at least 10% before Series A. Four-year vesting with a one-year cliff is the market standard. Our complete guide to equity compensation for startups covers each stage in detail.

What percentile should startups pay at?

Most companies (63%) target the market median for base salaries, but startups often have reasons to differ. Small companies are more likely to pay above it: 18% of companies with under 100 employees target the 75th percentile, compared with 12% overall (source: Ravio Compensation Trends 2027). See our guide to creating a compensation philosophy.

Where can I find salary data for startup hiring?

Ravio's live benchmarks let you filter by funding stage, so you can see what startups at your stage are paying for each role, level and location. You can try three benchmarks free, and our guide to the best tools for salary benchmarking compares the options.