Shift in Startups: The Evolving Landscape of Equity and Salaries
The allure of abandoning a conventional corporate trajectory in favor of the unpredictable realm of startups has historically rested on the promise of lucrative equity.
Early participants at pioneering fintech firms such as Revolut reaped substantial rewards, their stock options ballooning into fortunes as their ventures flourished. However, for those contemplating a leap into the fintech sector today, the narrative is markedly dissimilar.
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Recently, accounting infrastructure enterprise Carta unveiled a report delineating recruitment and compensation trends for startups utilizing its framework.
While the insights are limited to a timeline extending only to Q2 2025, they reveal a concerning contraction: initial equity offerings for new hires at US-based startups in June 2025 have plummeted by 50% compared to April 2022.
The disparity is further underscored by a significant dip in the value of equity offers between November 2022 and September 2023, which has since plateaued. In stark contrast, salaries have seen slight, albeit noticeable, increments.
This trend becomes particularly intriguing against the backdrop of burgeoning demand for engineering talent, who typically command heftier equity packages.
In the first half of 2025, engineers constituted 29.7% of all new hires, a rise from approximately 25% in 2022, while operational roles accounted for only a meager 5.2% of the total.
Notably, specialists in artificial intelligence and machine learning at startups are enjoying unprecedented compensation.
As of June 2025, the average equity package for these skilled professionals surged by at least 19% across all experience levels, with senior directors experiencing a staggering 52% spike in equity compensation, alongside a 12.8% uptick in salaries.
Amidst a broader stagnation in hiring across various industries, fintech demonstrates a modest upward trajectory.
The total workforce in the fintech sector expanded by approximately 10% in 2025; this stands in stark contrast to the gaming sector, which experienced a 20% contraction, and the education technology sphere, which saw a remarkable 40% decrease.
Interestingly, fintech appears to be thriving beyond US borders. A recent report from recruitment firm Morgan McKinley identified fintech as the fastest-growing segment of the UK financial landscape, with sales positions soaring 47% year-over-year in 2025, and engineering roles surging by an impressive 71%.
In recent years, US fintech firms have increasingly sought talent in London, where costs for early to mid-level engineers can be up to 50% lower.
Source link: Efinancialcareers.com.
