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Part of raising money from (most) LPs requires a bit of showmanship akin to that of Lawyers and Investment Bankers. This goes beyond the taking a "client" out t
by rargulati 11y ago
Part of raising money from (most) LPs requires a bit of showmanship akin to that of Lawyers and Investment Bankers. This goes beyond the taking a "client" out to dinner. It's the expectation of living a specific lifestyle and the perceptions the wealthy have of those asking for money. Also, consider the amount raised (typically XX million+). That usually allows you to pay $200-300k salaries (though whether that's right / justified is a different conversation).
As wealth changes hands over time, this expectation may change.
- carrotleads 11y agoWell they can charge all the expense to the fund and still take nominal salaries. The startup world isn't encouraging of founders who take high salaries or who take money off the table.. Some of this exorbitant salaries could have been paid to extend the runaway of key startups and generate better returns.