Startups Can Outcompete Big Tech Without Breaking the Bank

TechCrunch Disrupt 2025 attendees were told that early-stage startups can offer competitive compensation packages without matching the sizable salaries of big tech companies. According to founders and experts, developing a generous, fair, and flexible compensation strategy can help startups attract and retain top talent. This approach is particularly important in the current job market, where companies like Meta and OpenAI are willing to pay million-dollar salaries amid the AI race. Yin Wu, the co-founder and CEO of equity management software Pulley, emphasized the importance of being charitable in compensation packages. "Startups shouldn't try to compete with big tech companies," Wu said on stage at TechCrunch Disrupt in October. "A stable tech company and a startup don't generally attract the same potential candidates to begin with." Wu advised startups to focus on offering competitive equity packages rather than trying to match the salaries of big tech companies. Wu also shared her perspective on equity, stating, "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. I think it is unlikely, if the company is really growing and doing well, that you won't be able to afford to give more equity to your employees." This approach can help startups attract top talent and retain employees as the company grows. The current job market has created a significant compensation divide between big tech companies and startups. With companies like Meta and OpenAI offering million-dollar salaries, startups are facing increased pressure to offer competitive compensation packages. However, experts argue that startups should not try to compete with big tech companies on salary alone. Instead, startups should focus on developing a compensation strategy that is generous, fair, and flexible. This approach can help startups attract and retain top talent, even in a competitive job market. By offering competitive equity packages and a stable work environment, startups can differentiate themselves from big tech companies and attract the best candidates. The advice from experts at TechCrunch Disrupt 2025 is clear: startups should focus on developing a compensation strategy that is tailored to their specific needs and goals. By being charitable in their compensation packages and offering competitive equity, startups can attract and retain top talent and stay competitive in the current job market. As the job market continues to evolve, startups will need to adapt their compensation strategies to remain competitive. By focusing on equity and offering competitive compensation packages, startups can attract and retain top talent and stay ahead of the curve.