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Couldn't disagree more. You should pay yourself the absolute minimum you need to reduce burn and extend your runway. This doesn't mean free, it means living exp

by mceoin 9y ago

Couldn't disagree more. You should pay yourself the absolute minimum you need to reduce burn and extend your runway. This doesn't mean free, it means living expenses but no more. Keep the burn low and extend your runway. If those terms are undesirable, that's fine. Better not to raise money then, or to raise from a different profile of investor who is looking for different kinds of returns (i.e. not 'death or unicorn').

mceoin 9y ago
Decent salaries come at later stages of funding.
fragsworth 9y ago
If you're not paying yourself your actual value in salary, then you should be diluting the investors because you are investing your missing salary into your company.
- icebraining 9y ago
  Aren't the shares you already have supposed to be payment for that? The other investors had to put a lot of money to get them, often/usually(?) way more than the founders.
briandear 9y ago
So why doesn’t YV encourage companies to set up shop in Nevada or other low tax, low cost of living areas? How many YC companies are paying Bay Area office rents and paying California-level taxes? It’s not ok to not take a market rate salary, but it is ok to have an office in the most expensive zip codes in the country? Does physical proximity to SV make a single bit of difference to a company other than being close to investors? Unless a company is actually making in-person sales calls, why would the Bay Area be relevant? In terms of acquisitions, it matters not if the company is in Mozambique or Cupertino — the balance sheet is really all that matters. If the goal is to extend runway, why isn’t YC encouraging founders to set up shop in Texas or better yet be fully remote? When a house in SV costs 5 times more than a house in Texas, it’s pretty hard to expect founders to be able to survive on anything less than market rate.
- snowmaker 9y ago
  Companies only have to be in silicon valley for the three months of YC. After that, you're welcome to move to an inexpensive area, and many companies do.

by mceoin 9y ago

mceoin 9y ago

Decent salaries come at later stages of funding.

fragsworth 9y ago

If you're not paying yourself your actual value in salary, then you should be diluting the investors because you are investing your missing salary into your company.

icebraining 9y ago
Aren't the shares you already have supposed to be payment for that? The other investors had to put a lot of money to get them, often/usually(?) way more than the founders.

briandear 9y ago

So why doesn’t YV encourage companies to set up shop in Nevada or other low tax, low cost of living areas? How many YC companies are paying Bay Area office rents and paying California-level taxes? It’s not ok to not take a market rate salary, but it is ok to have an office in the most expensive zip codes in the country? Does physical proximity to SV make a single bit of difference to a company other than being close to investors? Unless a company is actually making in-person sales calls, why would the Bay Area be relevant? In terms of acquisitions, it matters not if the company is in Mozambique or Cupertino — the balance sheet is really all that matters. If the goal is to extend runway, why isn’t YC encouraging founders to set up shop in Texas or better yet be fully remote? When a house in SV costs 5 times more than a house in Texas, it’s pretty hard to expect founders to be able to survive on anything less than market rate.

snowmaker 9y ago
Companies only have to be in silicon valley for the three months of YC. After that, you're welcome to move to an inexpensive area, and many companies do.