This Week in Startups
How to pay yourself as a startup founder | Startup Finance Basics w/ Kruze's Scott Orn | E1860
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Founders should be aware of gender-based salary disparities and strive to close the gap for female founders.
- Founders must consider their personal burn rate and align it with the company's burn rate to determine appropriate compensation and financial stability.
Deep dives
Determining Founder Salaries
When it comes to determining how much a founder should pay themselves, several factors come into play. In the early stages of a startup, founders should expect to earn significantly less than they did in their previous roles. However, as the company raises more capital and progresses through funding rounds, founder salaries can increase. On average, seed-stage founders tend to earn around $120,000 to $140,000 per year, while series A and series B founders may see salaries closer to $175,000 and $250,000, respectively. It's important for founders to strike a balance between being adequately compensated and remaining hungry and scrappy to drive the company's success. Founders should also be aware of gender-based salary disparities and strive to close the gap for female founders.
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