Attracting Top Talent: Creative Strategies for Startups with Limited Resources

The Growing Compensation Gap Between Startups and Big Tech Companies

Startups have historically struggled to match the high salaries offered by major tech corporations. However, with companies like Meta and OpenAI now willing to pay million-dollar salaries in the AI sector, the compensation gap has widened significantly.

Despite this challenge, early-stage startups can still thrive by implementing a generous, fair, and flexible compensation strategy. By doing so, they can attract top talent and remain competitive in the industry as they continue to grow. This advice was shared by founders and experts at the TechCrunch Disrupt 2025 event.

Yin Wu, the co-founder and CEO of Pulley, emphasized that startups should not try to directly compete with big tech companies. Instead, they should focus on offering generous compensation packages, including equity, to attract the right candidates for their unique work environment.

Randi Jakubowitz, from 645 Ventures, echoed Wu’s sentiments, highlighting the importance of setting clear goals and holding employees accountable for their performance and equity stakes. This approach ensures that startups get the most value out of their compensation packages.

The panelists emphasized the need for startups to establish a fair compensation and equity framework early on. This foundation allows for future adjustments without legal complications or internal conflicts.

For Wu and Pulley, this meant implementing standardized compensation ranges for each role and consistently offering equity in the 90th percentile. This approach promotes transparency and fairness within the company.

Rebecca Lee Whiting, founder of Epigram Legal, stressed the importance of setting standards to avoid legal issues such as gender pay discrepancies. By approaching compensation with integrity, startups can mitigate risks and maintain ethical practices.

In conclusion, the key takeaway from the experts is that while startups may need to refine their compensation strategies over time, starting with a solid foundation based on fairness and transparency is crucial. By prioritizing the needs and motivations of potential hires, startups can build a strong team and drive success without the pressure of getting everything perfect from the start.