Series B Compensation Benchmarks Research

Part
01
of two
Part
01

Salaries at Series B Fintech Startups

Salaries for Series B Fintech Startups range from $80,000 to $135,000 for junior level software engineer, $155,000 to $205,000 for senior level software engineer, $100,000 to $135,000 for product manager, and $99,000 to $230,000 for chief technology officer jobs.

Junior level software engineer

  • Bento is a fintech company that has received $9 million in Series B financing in 2018. It is looking to hire a junior software engineer (full stack) to work in Chicago (IL) for an annual salary of $80,000 to $125,000.
  • Cedar is a healthcare-focused fintech company that has received $36 million in Series B funding in 2018. It is hiring a junior software engineer (full stack) to work in New York City (NY) for an annual salary of $95,000 to $135,000.

Senior level software engineer

  • PeerStreet is a real estate finance-focused fintech company that has received $30 million in Series B funding in 2018. It is looking to hire a senior software engineer to work in El Segundo (CA) for an annual salary of $155,000 to $195,000.
  • The Guarantors is a fintech company that has received $15 million in Series B funding in 2019. It is looking to hire an engineering director to work in New York City (NY) for an annual salary of $150,000 to $205,000.
  • Cedar is a healthcare-focused fintech company that has received $36 million in Series B funding in 2018. It is hiring a senior software engineer (full stack) to work in New York City (NY) for an annual salary of $115,000 to $155,000.

Product manager

Chief Technology Officer

  • Ocrolus is a fintech infrastructure company that has received $25 million in Series B financing in 2019. It is hiring a Chief Technology Officer to work in New York City (NY) for an annual salary of $99,000 to $130,000.
  • Lark is a health care AI company that received $27 million in Series B funding in 2016. It is hiring a Chief Technology Officer/VP of Engineering to work in Silicon Valley for an annual salary of $150,000 to $230,000.

RESEARCH STRATEGY

In order to determine the salaries of Series B fintech startups in the United States, we researched job sites such as Angel and Linkedin. Importantly, we provided information on the location of the companies, salary scale, and funding. Unfortunately, we could not get the second example of a chief technology officer job salary scale in the fintech industry as such, we expanded to identify a series B company in the healthcare industry. Importantly, your research team engaged in extensive research to identify the actual salaries of the assigned job categories. Unfortunately, we could not collect information despite using sophisticated search strategies. We extend our research strategy to identify the salary range of the assigned job categories. Your research team collected this information from Angel list, which provided salary range data as provided by the hiring companies.
Part
02
of two
Part
02

Factors that Determine Salary Increases at Series B Fintech Startups

Startups do not usually give any pay increases before they reach Series B or C, as most of the funds available are invested in growing the company. After reaching the Series B funding phase, companies that paid salaries below the market rate have to adjust to keep their best employees, but also need to have a compensation system in place to determine the factors used to give pay increases. Factors include performance, startup maturity, inflation, market positioning, employee loyalty, and employee role.

The breakdown of these factors can be found below. These cover Series B&C startups, not especially fintech startups. This is due to the lack of sources focusing on this particular category of startups at this particular stage of funding.

1) Performance

2) Startup Maturity

  • Pay rises increase with the maturity of the company to get closer to market rates.
  • A company whose value rises and that raises more capital can increase the pay rates of its employees.
  • After passing B and C funding rounds, employees are more entitled to ask for pay rises, especially if they have salaries below market rates.

3) Inflation

  • Startups should adjust employee salaries to the market every year to keep salaries at market rates and make sure employees can have successful lives outside the office.
  • Mature startups that have reached Series B or C stage can afford to pay salaries that are adjusted to the market.

4) Startup Positioning

5) Loyalty

  • As startups are faced with employee pay rises for the first time, usually at the series B stage, they use loyalty as one of the main factors to determine pay rises.
  • Employees who have been with the company the longest would qualify first for salary rises.

6) Role

  • As startups grow through the different stages of funding, roles evolve and change gradually.
  • Those gradual role changes are taken into account when giving pay rises.
  • Series B and C startups take into account role changes when deciding to determine pay rises.



Sources
Sources

From Part 02
Quotes
  • "Now that you’re in growth mode all of your employees should become eligible for salary increases based on performance, but new hires should be told that salary reviews occur annually after their first year anniversary."
Quotes
  • "As the company matures, the salaries of all positions start to get closer and closer to market rate. If you’re curious what to expect, we recommend playing with the salaries and equity tool by AngelList or researching salary ranges at specific companies on Glassdoor. "