4 ms·

If you’ve raised venture capital, you have to pay yourself

• robocat 4y ago
  > The investor argued that the founders were “working for equity,” If you are working for equity, then you should be paid in preferential shares. I would like to see the investor respond to that. > if your market rate is $250,000 per year and you can make your finances work by paying yourself $150,000 In theory you should also be getting $100k worth of preferential shares because you are investing cash equivalent.
  • robocat 3y ago
    Although getting paid in preferential shares would be declarable income and cause extra taxation, and extra risk of cashflow problems, or perhaps even permanent extra losses if the shares went to zero value.