Team Composition Analysis
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
Working on team composition analysis tasks or workflowsNeeding guidance, best practices, or checklists for team composition analysisDo not use this skill when
The task is unrelated to team composition analysisYou need a different domain or tool outside this scopeInstructions
Clarify goals, constraints, and required inputs.Apply relevant best practices and validate outcomes.Provide actionable steps and verification.If detailed examples are required, open resources/implementation-playbook.md.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, businessFirst engineer (if needed)Contract roles: Design, marketingFocus: Build and validate product-market fit
Seed ($500K-$2M ARR)
Team Size: 5-15 people
Key Hires:
Engineering lead + 2-3 engineersFirst sales/business developmentProduct managerMarketing/growth leadFocus: Scale product and prove repeatable sales
Series A ($2M-$10M ARR)
Team Size: 15-50 people
Department Build-Out:
Engineering (40%): 6-20 peopleSales & Marketing (30%): 5-15 peopleCustomer Success (10%): 2-5 peopleG&A (10%): 2-5 peopleProduct (10%): 2-5 peopleFocus: Scale revenue and build repeatable processes
Role-by-Role Planning
Engineering Team
Pre-Seed:
Founders write code0-1 contract developersSeed:
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 salesContract marketing helpSeed:
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 leadSeed:
First Product Manager ($120K-$150K)Contract designerSeries 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 supportSeed:
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 CFOSeries 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-$120KMid-Level: $120K-$150KSenior: $150K-$180KStaff/Principal: $180K-$220KEngineering Manager: $160K-$200KVP Engineering: $180K-$250KSales:
SDR/BDR: $50K-$70K base + $50K-$70K commissionAccount Executive: $80K-$120K base + $80K-$120K commissionSales Manager: $120K-$160K base + $80K-$120K commissionVP Sales: $150K-$200K base + $150K-$200K commissionProduct:
Product Manager: $120K-$150KSenior PM: $150K-$180KHead of Product: $150K-$180KVP Product: $180K-$220KMarketing:
Marketing Manager: $90K-$130KContent/Demand Gen: $70K-$100KHead of Marketing: $130K-$170KVP Marketing: $150K-$200KCustomer Success:
CS Representative: $60K-$90KCS Manager: $100K-$130KVP Customer Success: $140K-$180KTotal Compensation Formula
Total Comp = Base Salary × 1.30 (benefits & taxes) + Equity Value
Fully-Loaded Cost:
Base salaryPayroll taxes (7.65% FICA)Benefits (health insurance, 401k): $10K-$15K per employeeOther (workspace, equipment, software): $5K-$10K per employeeRule 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 cliffEarly Employees (Pre-Seed):
First engineer: 0.5-2.0%First 5 employees: 0.25-1.0% eachSeed 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% reservedSeed: 10-15% top-upSeries A: 10-15% top-upSeries B+: 5-10% per roundPre-Funding Dilution:
Investors often require option pool creation before investment, diluting founders.
Example:
Pre-money: $10M
Investors want 15% option pool post-moneyCalculation:
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 reportsDirectors: 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 developmentSales (revenue-generating roles)Mission-critical operationsInstitutional knowledge rolesUse Contractors for:
Specialized short-term needs (legal, accounting)Variable workload (design, marketing campaigns)Skills outside core competencyTesting role before FTE hireGeographic expansion before permanent presenceCost Comparison
Full-Time:
Lower hourly costBenefits and overheadLong-term commitmentCultural fit mattersContract:
Higher hourly rate ($75-$200/hour vs. $40-$100/hour FTE equivalent)No benefits or overheadFlexible engagementEasier to scale up/downHiring Velocity
Realistic Timeline
Role Opening to Hire:
Junior: 6-8 weeksMid-Level: 8-12 weeksSenior: 12-16 weeksExecutive: 16-24 weeksTime to Productivity:
Junior: 4-6 monthsMid-Level: 2-4 monthsSenior: 1-3 monthsExecutive: 3-6 monthsPlanning 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 revenueEngineering: 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
Additional Resources
Reference Files
references/compensation-benchmarks.md - Detailed salary data by role, level, and locationreferences/equity-calculator.md - Equity sizing formulas and dilution scenariosExample Files
examples/seed-stage-hiring-plan.md - Complete hiring plan for seed-stage SaaS companyexamples/org-chart-evolution.md - Organizational design from 5 to 50 peopleQuick Start
To plan team composition:
Identify stage - Pre-seed, seed, or Series ADefine roles - What functions are needed nowPrioritize hires - Critical path for business goalsSet compensation - Base salary + equity by levelPlan timeline - Account for recruiting and ramp timeCalculate budget - Fully-loaded cost × headcountDesign org chart - Reporting structure and span of controlAllocate equity - Fair allocation that preserves poolFor detailed compensation benchmarks and hiring plan templates, see references/ and examples/.