Equitybee introduces a complimentary benchmarking tool as startup employees finally gain access to the equity data that companies have possessed for years.

      TL;DR

      Equitybee has introduced a free equity benchmarking tool, Equitybee Benchmark, based on over 9,000 verified equity grants from more than 2,500 US startups. Employees can compare grants across departments, seniority levels, and company stages. The tool does not aim to predict exit values or give financial advice. With IPOs becoming more common and AI-related hiring increasing equity compensation, the gap in information between employers and employees regarding pay is finally closing.

      Equitybee has unveiled Equitybee Benchmark, a no-cost tool that enables employees of US startups to compare equity grants by role, seniority, department, and company stage. The company points out that while salary benchmarking has become commonplace, equity information has traditionally been restricted within HR departments.

      Just as you wouldn't accept a salary without comparing it to the market, there are numerous platforms like Levels.fyi, Glassdoor, and LinkedIn salary data to help with that. Input your job title and location, and you'll quickly learn if the offer is competitive. However, when it comes to your equity grant, such comparisons have been difficult. If your offer includes 20,000 options, is that a considerable amount? For many years, receiving such information has been challenging for employees, even though equity can make up a significant part of a startup's compensation package.

      Equitybee enters this space with the launch of Equitybee Benchmark, which allows US startup employees to compare equity grants across roles, seniority levels, departments, and company stages.

      The Gap

      Companies and HR departments have had access to equity benchmarking tools for many years. They are well aware of market rates because they purchase the relevant data. Conversely, employees who are assessing one of the most crucial aspects of their compensation have generally had minimal information. The knowledge gap has predominantly favored employers, who possess the data while employees rely on instinct.

      After interviewing numerous founders and executives, I've consistently encountered this gap. Tom Sosnoff, who has successfully sold two companies for over a billion dollars each, mentioned in a recent interview that every CEO in the S&P 500 knows what their counterparts earn because that information is public. This transparency contributes to the continuous rise in executive compensation, while others negotiate without such data. While his observation was regarding salaries, it holds even more weight in terms of equity. Context matters; having precise figures can significantly influence discussions.

      What Equitybee Built

      Credit: Equitybee

      What makes this initiative particularly intriguing is the dataset it is based on. The Benchmark utilizes data from over 9,000 verified equity grants submitted through Equitybee, covering more than 2,500 US startups from Seed to Pre-IPO stages. The information is verified, rather than self-reported figures from a survey.

      The tool addresses a challenge that many do not have enough data to resolve. Even if you are an experienced startup professional who understands strike prices, can calculate exit scenarios, and grasp how equity functions, it remains difficult to determine if the equity being offered is competitive and appropriate for your new role.

      The Equitybee Benchmark eliminates this uncertainty, allowing you to see how grants compare by department, seniority, and the stage of the company. For instance, if you're joining a Series B company as a senior engineer, you can access median, 25th, and 75th percentiles for similar employees, providing you with valuable context.

      What It Deliberately Does Not Do

      The tool does not disclose the actual worth of your equity or predict if your company will exit successfully or what your options may ultimately yield. Such predictions are impossible, as no one can foresee them with certainty. Instead, it offers context—similar to what employers have had for years—enabling you to enter negotiations regarding offers or compensation with genuine market data instead of uncertainty.

      This is particularly significant in four scenarios: evaluating a new job offer, preparing for a compensation negotiation, contemplating a switch to a different company, or simply trying to understand the equity you already possess.

      Why Now

      The timing of this launch is noteworthy. With IPOs making a comeback and the competition for talent in AI steadily increasing compensation for startups, equity has become a more substantial component of total compensation than it has been in years. Those receiving it deserve the same data access that is available to employers providing it.

      This initiative reflects a larger shift where previously inaccessible data within institutions is being made available to the individuals it impacts. If you work at a startup, are considering one, or are currently assessing an offer letter to determine how competitive it is, you can use Equitybee Benchmark for free.

      You would never accept a salary without comparing it; your equity should be treated the same way.

      *Equitybee Benchmark provides market context solely based on data from the Equitybee platform and does not constitute financial, tax, legal, or compensation advice. The data is presented as-is and has not been independently verified; it may not represent the wider startup market. Equitybee conducts private financing contracts (PFC