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I didn't say investors wouldn't fund your salary. I said they won't fund a $200k salary. I said $50k is more like it. I hear guys ALL the time talking about

I didn't say investors wouldn't fund your salary. I said they won't fund a $200k salary. I said $50k is more like it. I hear guys ALL the time talking about how they want to find investors so they can keep their massive paychecks while letting someone else foot the bill to test their idea. It's just unrealistic.

sabat 19y ago
$200k/yr may seem massive, but here in the bay area, it's not. $150k is about the base if you don't want to live at the very edge (so far out that it's a 1.5 hour commute to get to San Mateo, SF, San Jose, etc.). I live in a 1800 sq ft townhouse on the peninsula worth $900,000, I'm on one income, and my head is just above water -- I can save money every paycheck, but not as much as you think. I make just shy of $200k. I know you realize that the bay area is expensive -- I'm just not sure you realize how expensive it is. That fact doesn't change what investors do -- maybe they don't want to invest in salaries. But forcing entrepreneurs into huge debt doesn't sound like a smart investment plan. No one's looking for a mansion; I just don't want to live in the ghetto because I had an idea.
- wschroter 19y ago
  Sabat - I'm actually looking for a place myself in the bay area, so I do know how expensive it is. If you can convince an investor to pay you $200k to vet your idea, all the power to you my friend. But I have to advise you that it's not something that an investor will typically do.
  - menloparkbum 19y ago
    How much do you think the founders at places like Digg and Facebook are making? I can guarantee it is closer to $200K than it is $50K.
    - transburgh 19y ago
      I believe those would be the exception to the rules. They are already very successful. We all know how many VC funded companies actually make it to the Digg/Facebook level...very very few. If VC's were giving the majority of the companies they funded $200k salaries those VC's wouldnt be in business very long.
      - menloparkbum 19y ago
        the biggest expense is hiring. senior level people in the valley are not going to work for less than $100K unless they are getting 20% of the company, which they aren't. the reason why VCs invest $7M into series A rounds is BECAUSE they need to pay everyone high salaries. note: I'm not saying this is what SHOULD happen, nor am I saying paying six figure salaries is a good strategy. It is just what happens. There are thousands of ersatz executive types in Silicon Valley who have made a career out of bouncing around between overpaid "VP" positions at startups that eventually run out of money and fade away.
sbraford 19y ago
My mistake. I agree, $200k is way too much for a startup founder salary.

sabat 19y ago

$200k/yr may seem massive, but here in the bay area, it's not. $150k is about the base if you don't want to live at the very edge (so far out that it's a 1.5 hour commute to get to San Mateo, SF, San Jose, etc.). I live in a 1800 sq ft townhouse on the peninsula worth $900,000, I'm on one income, and my head is just above water -- I can save money every paycheck, but not as much as you think. I make just shy of $200k. I know you realize that the bay area is expensive -- I'm just not sure you realize how expensive it is. That fact doesn't change what investors do -- maybe they don't want to invest in salaries. But forcing entrepreneurs into huge debt doesn't sound like a smart investment plan. No one's looking for a mansion; I just don't want to live in the ghetto because I had an idea.

wschroter 19y ago
Sabat - I'm actually looking for a place myself in the bay area, so I do know how expensive it is. If you can convince an investor to pay you $200k to vet your idea, all the power to you my friend. But I have to advise you that it's not something that an investor will typically do.
- menloparkbum 19y ago
  How much do you think the founders at places like Digg and Facebook are making? I can guarantee it is closer to $200K than it is $50K.
  - transburgh 19y ago
    I believe those would be the exception to the rules. They are already very successful. We all know how many VC funded companies actually make it to the Digg/Facebook level...very very few. If VC's were giving the majority of the companies they funded $200k salaries those VC's wouldnt be in business very long.
    - menloparkbum 19y ago
      the biggest expense is hiring. senior level people in the valley are not going to work for less than $100K unless they are getting 20% of the company, which they aren't. the reason why VCs invest $7M into series A rounds is BECAUSE they need to pay everyone high salaries. note: I'm not saying this is what SHOULD happen, nor am I saying paying six figure salaries is a good strategy. It is just what happens. There are thousands of ersatz executive types in Silicon Valley who have made a career out of bouncing around between overpaid "VP" positions at startups that eventually run out of money and fade away.

sbraford 19y ago

My mistake. I agree, $200k is way too much for a startup founder salary.