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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
by 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 agoHow 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 agoI 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 agothe 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.