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> We raised over $25m and sold millions of dollars of product to real customers. I don’t fully get this part, even if the startup wasn’t financialy viable, why
by hartator 8y ago
> We raised over $25m and sold millions of dollars of product to real customers.
I don’t fully get this part, even if the startup wasn’t financialy viable, why didn’t he pay himseslf something around $10-35k per month as CEO? He won’t have his savings crushed now, and probably made money for himself. Maybe I am missing something obvious.
- jacquesc 8y agoHe wouldn't have been able to raise $25m if he was paying himself that much. Investors are very sensitive to founders who pay themselves enough to live comfortably. Sadly this biases investors towards funding either the young and the rich.
- lev99 8y agoA sacrifice for shareholder value.
- tristanj 8y ago>Why didn’t he pay himseslf something around $10-35k per month as CEO? I take you've never planned a startup budget before ;). Try running the numbers on how much it costs to run a startup with 5 employees for 3 years given $2m. You can't afford to pay the CEO $35k/month because you will run out of money far to quickly.
- ksahin 8y agoYou are right, but paying a founder $120k/y is totally fine when you raised $25m. It's more than that, money shouldn't be a problem for founders, so that they can focus 100% on their company. This subject has been discussed over and over again by top tier VCs !
- AstralStorm 8y agoWhy would a founder of a start-up need 120k$/y though? Are they saving to buy a property? Renting in an extremely expensive place? Perhaps hiring servants? If none of this happens (and I bet some of this could be set add cost of business) yore just filling your bank account with VC money and reducing the chances of success.