With the exception of the startup porn you read on TC, the only companies that raise multi-million dollar Series A rounds already have traction. The difficulty in gaining traction in today's saturated marketplaces should not be underestimated.
In most standard Series A rounds the company creates a 15-20% option pool and the investor gets around 30% of the equity.
Assuming two co-founders and a small seed round, the founders each likely own 18-20% of the company. They also went without pay and healthcare for a while, built a product, got traction, raised a real round (which is more difficult than it seems you believe), and are giving you upwards of 10% of their own stake. In addition, it is likely that the founders are taking below-market salaries while paying everyone else near -market salaries. That said, 1-2% for an early, senior hire is right on the money.
With the exception of the startup porn you read on TC, the only companies that raise multi-million dollar Series A rounds already have traction. The difficulty in gaining traction in today's saturated marketplaces should not be underestimated.
In most standard Series A rounds the company creates a 15-20% option pool and the investor gets around 30% of the equity.
Assuming two co-founders and a small seed round, the founders each likely own 18-20% of the company. They also went without pay and healthcare for a while, built a product, got traction, raised a real round (which is more difficult than it seems you believe), and are giving you upwards of 10% of their own stake. In addition, it is likely that the founders are taking below-market salaries while paying everyone else near -market salaries. That said, 1-2% for an early, senior hire is right on the money.