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investors expect founders to pay themselves. they don't want founders to worry about day-to-day personal expenses so that the founders can concentrate on the bu
by clairity 9y ago
investors expect founders to pay themselves. they don't want founders to worry about day-to-day personal expenses so that the founders can concentrate on the business. that's part of the fiduciary and ethical/moral duty to making a startup successful. it's not contradictory.
but investors also expect founders to be frugal and make wise monetary decisions. the more you pay yourself, the less you have for marketing for example (and marketing is crucial to every startup). it's in your best interest as a founder to take enough in salary to not worry, but no more. so the business has the best chance of being successful. if founders are taking more than that, then it's an indication that they don't believe in the business or at the very least are distracted by other matters.