Startups Can Compete for Top Talent Without Big Tech Paychecks

Shares of early-stage startups have been struggling to attract top talent due to the widening compensation divide with big tech companies. According to experts who spoke at TechCrunch Disrupt 2025, startups can still offer competitive compensation packages by developing a generous, fair, and flexible strategy, even without matching the million-dollar salaries offered by companies like Meta and OpenAI. Yin Wu, the co-founder and CEO of equity management software Pulley, emphasized that startups should not try to compete directly with big tech companies. Instead, they should be as charitable as possible in their compensation packages, regardless of their financial limitations. "A stable tech company and a startup don't generally attract the same potential candidates to begin with," Wu said. "My pretty strong opinion when it comes to equity for a startup is that you should be more generous than what you think you should be." Experts agree that startups should focus on offering a unique value proposition that goes beyond salary. "Startups should be thinking about what they can offer that big tech companies can't," said another expert. "This could be a more dynamic work environment, opportunities for growth and development, or a sense of purpose and mission that aligns with the individual's values." The widening compensation divide has been exacerbated by the AI race, with companies like Meta and OpenAI offering lucrative salaries to attract top talent. However, this trend has created a challenge for early-stage startups, which often struggle to compete with the financial resources of their larger counterparts. Startups can still offer competitive compensation packages by being flexible and adaptable. According to Wu, startups should be willing to adjust their approach as they grow and evolve. "You don't have to have all the answers from day one," Wu said. "You can start with a generous equity package and adjust as you go." The key to success lies in developing a compensation strategy that is fair, flexible, and generous. By offering a unique value proposition and being adaptable, startups can attract top talent and build a strong foundation for growth. As the tech industry continues to evolve, startups will need to be creative and innovative in their approach to compensation in order to remain competitive. In the current market, startups are facing increased pressure to offer competitive salaries and benefits in order to attract and retain top talent. However, by focusing on what they can offer that big tech companies can't, startups can differentiate themselves and build a strong reputation in the industry. As one expert noted, "Startups have the opportunity to create a unique culture and work environment that is attractive to top talent, even if they can't match the salaries of big tech companies."