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How much can startup founders pay themselves?
Career research company 80,000 Hours estimates that founders going through the Y Combinator accelerator program pay themselves about $50,000. If they go on to raise more money, that salary can double. If the startup flops, $50,000 could be the highest salary a founder makes.
Do startups pay their founders?
Yes, in the US tech startups that have raised money tend to pay their founder CEOs about $130,000 per year.
How much does a CFO of a startup make?
Startup CFO Salary
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $222,500 | $18,541 |
| 75th Percentile | $165,500 | $13,791 |
| Average | $130,546 | $10,878 |
| 25th Percentile | $80,000 | $6,666 |
How much should a startup pay its founders?
An executive member of a startup should be paid just enough to ensure they are productive at work, but not getting complacent by the size of their bank account. Basically, give founders as much as they need, but not as much as they really want.
Do bootstrapping startup founders take a salary?
(While conventional wisdom says you should work on your business, not in it, bootstrapping startup founders have to do both.) I didn’t take a salary because I was literally starting the business from my kitchen table and using savings as seed money.
Should a co-founder contribute to a startup?
A co-founder whose most significant contribution is startup capital should probably be an investor, not a team member. If a co-founder does want to contribute, just pay them back when you close your first funding round. Hell, add interest if you want, but leave it at that. Giving founders too much equity, and employees too little.
Do founders become less productive after they get paid?
No founder is as productive after getting their full compensation as they are before; they simply have no financial incentive to be. That means they won’t go to bat for their employees and investors nearly as hard when it’s time for an exit.