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- Founding engineers are harder to close and more expensive in 2025. AI premium is real: +5% salary, +10–20% equity uplift.
- Regional pay gaps are shrinking. Midwest/South salaries are up ~5–7% YoY; SF/NYC still lead, but the edge is narrowing.
- Equity packages have normalised. Founders offer less equity than in 2021, but better terms (e.g. longer exercise windows).
- Founders cut their own pay to land talent. Average founder salary dropped from $132k → $75k.
- The real differentiator: vision + velocity. Great engineers want mission + momentum. Sell both.
Why This Matters?
The first technical hire can 10x your start-up or quietly kill it.
Hiring a founding engineer is not just about finding a builder. It's about finding a co-creator who will shape the product, team and culture. In 2024–2025, the bar is higher than ever, and so is the competition.
This report distils key insights, compensation benchmarks and founder takeaways from across the U.S. start-up landscape.
Regional Snapshots: 2025 Benchmarks
West Coast (SF, Seattle, LA)
- Senior founding engineer: $180k–$235k
- Equity: ~0.8%–1.5% typical, up to 4% for exceptional hires
- AI/ML roles earn ~5% more than generalists
- Burn rate pressure: Founders cut pay ~43% on average
- Poaching risk from OpenAI, Anthropic, FAANG
East Coast (NYC, Boston)
- Pay rivals SF: ~$160k–$210k for seniors
- Equity similar to West, slightly more in fintech/enterprise AI
- Strong pipeline from MIT/Columbia, but high competition from finance/Big Tech
South (Austin, Miami, Atlanta)
- Salaries: $150k–$180k typical, rising fast
- Equity offers are often higher to offset lower cash
- Strong remote-first hiring and tax perks (TX, FL)
- Talent clustering in Austin and Miami makes them AI hotbeds
Central (Chicago, Columbus, Midwest)
- Salaries up to $200k for top engineers
- High equity flexibility: ~1.5%–2% for early hires
- Strong value prop: cost efficiency + fast career growth
- Engineers returning from the coasts = quality, committed talent
5 Trends Founders Need to Watch
- Location-based pay gaps are shrinking. Be ready to pay SF-level comp for remote stars.
- AI equity premiums are real. Allocate more for AI/ML engineers: investor enthusiasm drives demand.
- Benefits matter more post-2022. Remote flexibility, exercise windows and healthcare > ping pong tables.
- Top candidates are asking better questions. Expect grilling on runway, growth plan, and exit strategy.
- Equity scepticism is rising. Communicate value early and make option mechanics candidate-friendly.
Founding Engineers Don't Just Want a Job
They're looking for a rocketship worth strapping into.
Every offer you make tells a story. Make it a story worth joining.
Talk to me about talent: joe.dukes@trustinsoda.com