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0 pointsconsumer4512y ago0 comments

Yeah, I have heard that it's a but of a negative signal if founders are paying themselves "nothing." Is this true?

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3 comments · 1 top-level

alephnerd2y ago· 2 in thread

If you made a couple million already it's fine, but then again, why are you coming to me for a Seed round unless you just want to set a price point? (ik a couple startups that did this)

If you don't have the track record or wealth to justify that then yea it is a massive red signal.

Imo, a CEO/CTO in the Bay Area should pay themselves market rate for their equivalent PM/Staff Eng position.

Some will take a very low salary ($70-90k) but they are also younger (early-mid 20s), but going up to $150-70k is doable depending on life circumstances (tbf, a founder with a family also probably has a decade+ of experience so I'd trust them more).

HorizonXP2y ago

TBH, as a founder with 15+ years experience and a family, I think you're on track. I'm starting a new thing right now with some built-up runway before I go raise a round. But in my position, I also know that I can go find an FTE or contracting position within 1 week if I needed funds to pay the bills.

The level of confidence you gain after years of doing this lets you take the risk without worrying about the money. I've never let my family be in a position to be at risk, why would that change now?

alephnerd2y ago

Exactly! Starting a company requires a lot of maturity, a tangible vision, and a bit of wild streak, and you build a healthy mix of all 3 after working in a domain for a decent amount of time. The most successful founders I've seen are those who tended to start their companies in their mid-30s after a decent mix of Engineering, Sales, and PM experience from the IC to leadership level, but after their kids (if they chose to have them) are already in grade school.

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