New Hires in Crypto Prefer Equity Over Tokens: Survey
A recent survey conducted by venture capital firms Variant and Union Square Ventures reveals that new hires in the crypto industry are more likely to receive equity rather than tokens as part of their compensation packages. The survey aimed to understand the trends that emerged during 2023, a year heavily impacted by a market downturn, by polling companies in Variant and USV’s investment portfolios.
Key Takeaways from the Survey
The survey gathered input from employees at 32 web3 startups and uncovered several insights. Despite the layoffs experienced by many crypto firms in 2023, the majority of respondents said that the bear market did not affect their hiring plans. Engineers make up a significant portion of the workforce and are better compensated compared to their peers. Additionally, companies are diversifying their staff geographically.
Equity Compensation Gains Popularity
Unlike previous years when tokens were commonly used as compensation, the survey found that new hires in 2023 were three times more likely to receive equity. This shift marks a significant change in compensation practices within the industry.
Competition and Pay
About 50% of respondents stated that they primarily compete with other crypto startups for talent, while 25% compete with web2 organizations. Engineers dominate the workforce in crypto startups and are paid better than colleagues in other industries. Senior-level web3 engineers earn a 23% premium compared to their counterparts, while early-career engineers earn 27% more.
Going Beyond the US
Although 70% of surveyed startups are based in North America, more than half of their employees are located outside of the U.S. This indicates an increasing geographic dispersion among crypto companies. The number of employees hired in the U.S. has decreased in recent years, highlighting the global nature of the industry.
Hot Take: Crypto Companies Adapt and Grow Despite Market Challenges
The survey’s authors note that crypto companies did not dwell on the bear market but instead used it as an opportunity to decentralize their operations, experiment with new compensation models, and expand their engineering teams. These findings suggest that the industry remains resilient and adaptable even in challenging market conditions.
By
By
By
By
By
By