Startups Fight Back: How to Attract Top Talent Without Breaking the Bank

Shares of startups have been struggling to compete with the lucrative salaries offered by big tech companies, particularly in the AI sector, where companies like Meta and OpenAI are willing to pay million-dollar salaries. However, according to experts and founders who spoke at TechCrunch Disrupt 2025, startups are not doomed to fail in attracting top talent. Instead, they can develop a compensation strategy that is generous, fair, and flexible, allowing them to offer competitive packages and adjust their approach as they grow. Yin Wu, co-founder and CEO of equity management software Pulley, emphasized that startups should not try to compete with big tech companies on salary alone. "A stable tech company and a startup don't generally attract the same potential candidates to begin with," Wu said. "Startups should be as charitable as they can in their compensation packages, regardless of their inability to match a big tech company's paycheck." Wu also stressed the importance of equity in startup compensation, advising founders to be more generous than they think necessary. "I think it is unlikely, if the company is really successful, that the equity will not be worth more than the cash upfront," she said. The compensation divide between startups and big tech companies has grown significantly in recent years, with the latter offering salaries that are often out of reach for early-stage startups. However, experts argue that this divide is not necessarily a barrier to attracting top talent. "Startups can offer competitive compensation packages that are fair and flexible, and that can be adjusted as they grow," said another expert on stage at TechCrunch Disrupt 2025. According to Wu, startups should focus on building a strong company culture and offering benefits that go beyond salary. "Startups can offer things like flexible work arrangements, professional development opportunities, and a sense of ownership and autonomy that big tech companies often can't match," she said. By focusing on these aspects, startups can attract top talent who are looking for more than just a high salary. The current state of the startup ecosystem is characterized by a growing divide between startups and big tech companies. However, experts believe that startups can still attract top talent by offering competitive compensation packages that are fair and flexible. As the startup landscape continues to evolve, it will be interesting to see how companies like Pulley and others adapt to the changing needs of their employees. In the meantime, startups can take a cue from companies like Pulley, which has built a reputation for offering generous equity packages to its employees. By being more charitable in their compensation packages and focusing on building a strong company culture, startups can attract top talent and stay competitive in the market.