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This is 100% normal, and very common. You owe it to your employees to take everything off of your "mental plate" that doesn't relate to building the company. Y
by askafriend 8y ago
This is 100% normal, and very common.
You owe it to your employees to take everything off of your "mental plate" that doesn't relate to building the company. Your primary objective should be ensuring the business does well, employees are treated well, progress is being made etc.
Paying rent, worrying about food costs, etc should never be a primary concern if you have investors (for the investment's sake as well) and especially if employees are also shareholders (the value of their equity is at risk if you or other key members are personally at risk).
I've heard that usually around the Series A is when investors make the founders take some money off the table so they aren't living out of their car, eating ramen everyday, or dropping their child-care responsibilities, among other risk factors.
With all that being said, you can do good by your employees by offering liquidity to the earliest employees who have stuck it with you for X number of years or through some significant specified milestones.
- burtonator2011 8y agoAgreed... this is called "partial founder buyout" btw and helps align investors and founders. Your investors want you to shoot for the stars... it's hard to do that when you're worried about rent, bills, etc. Additionally, your EMPLOYEES benefit from this too as you're now thinking like investors and want to grow the company.