• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Index Ventures launches web-app to help founders calculate employee stock options

September 15, 2021 by David Barret Leave a Comment

The ability to offer stock options is utterly essential to startups. They convince talented people to join when the startup is unlikely to be capable of matching the high salaries that larger, established tech firms can offer.

However, it’s a complex business developing a competitive stock option plan. Luckily, London-based VC Index Ventures today launches both a handy web app to calculate all this, plus new research into how startups are compensating their key hires across Europe and the US.

OptionPlan Seed, is a web-app for seed-stage founders designing ESOPs (Employee Stock Ownership Plans). 
The web app is based on Index’s analysis of seed-stage option grants, drawing on data from over 1,000 startups.

The web app covers a variety of roles; 6 different levels of allocation benchmarks; calculates potential financial upside for each team member (including tax); and adjusts according to policy frameworks in the US, Canada, Israel, Australia, and 20 European countries.

It also builds on the OptionPlan for Series A companies that Index launched a few years ago.

As part of its research for the new tool, Index said it found that almost all seed-stage employees receive stock options. However, while this reaches 97% of technical hires at seed-stage startups and 80% of junior non-technical hires for startups in the US, in Europe only 75% of technical hires receive options, dropping to 60% for junior non-technical hires.

That said, Index found stock option grant sizes are increasing, particularly among startups “with a lot of technical DNA, and weighted towards the Bay Area”. In less tech-heavy sectors such as e-commerce or content, grant sizes have not shifted much. Meanwhile, grants are still larger overall as seed valuations have grown in the last few years.

Index found the ESOP size is increasing at seed stage, following a faster rate of hiring, and larger grants per employee. Index recommends an ESOP size at seed stage is set at 12.5% or 15%, rather than the more traditional 10% in order to retain and attract staff.

The research also found seed fundraise sizes and valuations have doubled, while valuations have risen by 2.5x, in Europe and the US. 


Additionally, salaries at seed have “risen dramatically” with average salaries rising in excess of 60%. Senior tech roles at seed-stage startups in the US now earn an average $185,000 salary, a 68% increase over 3 years, and can rise to over $220,000. But in Europe, the biggest salary increases have been for junior roles, both technical and non-technical.



That said, Index found that “Europe’s technical talent continues to have a compensation gap” with seed-stage technical employees in Europe still being paid 40-50% less on average than their US counterparts. Indeed, Index found this gap had actually widened since 2018, “despite a narrowing of the gap for non-technical roles”.


Index also found variations in salaries across Europe are “much wider than the US”, reflecting high-cost hubs like London, versus lower-cost cities like Bucharest or Warsaw.

The war for talent is now global, with the compensation gap for technical hires narrowing to 20-25% compared to the US.


Index’s conclusion is that “ambitious seed founders in Europe should raise the bar in terms of who they hire, particularly in technical roles” as well as aiming for more experienced and higher-caliber candidates, larger fundraises to be competitive on salaries.

Source Link Index Ventures launches web-app to help founders calculate employee stock options

David Barret
David Barret

Related posts:

  1. Britain’s Raab, in Qatar, says need to engage with Taliban on Afghanistan
  2. U.S. top general secretly called China twice as Trump term ended -report
  3. Haiti PM fires prosecutor seeking charges against him in president’s killing
  4. Dollar drifts as soft inflation raises taper timing questions

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Get Ready, Skywatchers: A “Dazzling” Total Lunar Eclipse Is Coming In 2025
  • How A Man Won The Lottery 14 Times Using Unbelievably Basic Math
  • What Are The Amazon’s “Flying Rivers”? And Why Every Single One Of Us Relies On Them
  • Curious New Microbe With Tiny Genome Toes The Line Between Cell And Virus
  • We’ve Just Found Out Where The World’s Longest-Living Vertebrate Has Its Babies
  • For The First Time, An Animal Has Been Shown Responding To Plant-Produced Sounds
  • Deep Ocean Currents Have “Weather” And Seasonal Changes That We’re Only Just Learning About
  • Stratus: What Are The Symptoms Of The Latest COVID-19 Subvariant To Spread Around The World?
  • In 1927, Henry Ford Tried To Build A Town In The Amazon And Things Went Very, Very Badly
  • Human Botfly: Say Hello To The Parasite That Would Love To Get Under Your Skin
  • Is The Weather Making Your Headache Worse?
  • “Zoning Out” Actually Helps You Learn? Data From Up To 90,000 Brain Cells Says So
  • Over Past 250,000 Years, Three Major Waves Of Human-Neanderthal Interbreeding Have Been Identified
  • Zebrafish “Catch” Yawns Just Like Us – We Might Need To Rethink Evolution To Account For That
  • 80,000-Year-Old Neanderthal Footprints Reveal How Children Hunted On Beaches
  • 5 Animals That Have Absolutely No Business Jumping (In Our Very Humble, Definitely Unbiased Opinion)
  • Polar Vortex Patterns Explain Winter Cold Snaps Against Background Warming Trend
  • Scientists Tracked An Olm For 2,569 Days And It Did Not Move An Inch
  • Look Out For “Fireballs”: The Best Meteor Shower Of 2025 Is About To Commence, According To NASA
  • Why Do Many Large Language Models Give The Same Answer To This “Random” Number Query?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version