The Foundational Rule
Two weeks ago, my post about founder salaries sparked hundreds of comments. It clearly hitting a nerve in the startup community. Given the heated discussion, I decided to dive deeper into this nuanced topic. 💭 Here's what I've learned from both sides of the table - as a founder who started with an extremely low salary twenty years ago, and now as an investor:The foundational rule: Early-stage founders should aim for breakeven, not wealth. Your salary should cover:- Location costs (US vs Europe)- Family obligations- Housing essentials- Basic healthcareThree key factors that actually determine appropriate founder salary:- Company progress (revenue/user engagement)- Deal momentum (investor competition)- Founder track record🚩 Major red flag: Founders taking excessive salaries (think $400K) right after pre-seed funding. This signals misaligned priorities and sets problematic precedents for company-wide compensation.🔑 Key advice: Have transparent salary discussions with investors […]