foundersnetwork.com is using a security service for protection against online attacks. Angel investors often provide seed funding, and this is typically in the form of a convertible note or SAFE. There is no one definitive answer to how much a startup CEO should be paid. which includes data going as far back as 2018, and shows how salaries typically increase from funding round to funding round. said Vanessa Kruze, CEO of Kruze Consulting. These would usually be for restricted stock or stock options with a standard 4-year vesting schedule. This decision depends on various factors, such as the companys financial health and the founders ability to self-finance. Additionally, San Francisco has a strong community of tech enthusiasts who are always eager to share advice and support new businesses. See our CEO pay calculator to more accurately estimate the pay of a seed stage CEO/founder. "If you're going to disrupt the status quo and beat the competition, you're not going to do it by playing their game.". According to ZipRecruiter, the average startup CTO salary is roughly $144,000, while the average startup COO salary is roughly $123,000. It [a low salary] aligns interest with the equity holders. Very few entrepreneurs have the courage to be that transparent. Startup founders make money in a variety of ways. Read on to see the average CEO salary, detail on how CEO pay differs as companies raise increasing amounts of capital, salary data by company industry - and more! You may not be in that position. By the way, to see some survey data on what other people think the founder/CEO salary should be, check out the OnStartups poll on founder salary. One minute youre sure youre on the right track, 3 min read To learn more about how to become an angel investor, click here to attend the event on 3 min read To learn more about how to excel at founder-led sales, click here to attend Leslies webinar on 26 min readScaling a startup is like building a skyscraper from the ground up. Were making some money and Im getting 65k.at this point in life I need Some going towards retirement and student loans so this was the lowest I was willing to jump ship and work with my co-founder. Headcount expands as a companys valuation increases, though not always linearly. In fact, the VCs will insist on this. Theyre responsible for fundraising, reporting to the board and other stakeholders, providing direction to the company, and making operational decisions. Some receive income from dividends, others receive a salary, and still, others may receive founders stock or other equity compensation. For example, a vesting schedule may be four years long, with 25 percent of shares available after every year. I personally would rather have another hire than a bigger paycheck! A few observations stand out: Some of the best CEOs take the lowest salaries. as lame as it sounds, i think its all circumstantial different for each person/founder, what your goals are, and what you think is necessary for your lifestyle. A founder with no mortgage, kids, etc will have different cash needs than a founder that has a minimum cash hurdle to clear (in the absence of being very wealthy), The amount raised in a seed round has an obvious impact. Much of this funding is passed down to the companys employees, who are typically given both startup salary and equity. A restaurant CEO might earn as little as $23k per year, while someone with decades of experience running successful companies may earn up to $4 million annually or more! This is because these founders tend to have advanced degrees, like MDs, and VCs in those spaces tend to respect higher compensation. There is no easy answer, but here are some things to consider. One of the most important conversations to have with a venture capitalist, before you sign a term sheet, is the salary discussion. Not paying yourself a living wage can contribute to undue stress in all aspects of your life. The upper ranges would be for highly desired candidates with strong track records. The median company running a seed funding round is 3 years old. Yes, it can. Youre reading a preview of an online book. 
However, some general principles can help guide your decision-making process. We are strong advocates for CEOs and founders paying themselves a fair market salary. However, as the year ended and many technology companies recovered - and as venture funding continued at unprecedented levels - boards and executives felt comfortable increasing executive compensation to pre-crisis levels., Compared to Their Male Counterparts, Female CEOs Took a Pay Cut During the Pandemic. Included in the equation that VCs use to make investment decisions is CEO salaries, and experienced startup CEOs realize that. WebA founder should ideally take a significant salary cut (50%+ cut) because their entire upside should be in their equity, dimensionalized by the value they create for consumers, Interested in other data on startup spending? The table below shows average and median salaries since 2018. The Inflation Reduction Act will provide crucial upgrades to IRS services and personnel, The Biggest Drawback of Using a PEO for Payroll and Benefits. Affordable Monthly Bookkeeping for Startups, Key terms, tips and tricks, free financial models, taxes and more, Kruze is a leader in bookkeeping services for startups, We get your startup ready for the VC process, Projections, budgets and FP&A help for seed venture funded companies, Outsourced CFOs to help manage your growing startup, Industry specific expertise in bookkeeping, tax, FP&A and beyond, Kruze is a leader in startup tax filings, advice and more. being paid lower than market rate. The VCs set my salary without discussing or consulting with me (a different time, indeed). With over $10 billion in funding raised by our clients, Kruze is a leader in helping funded startups with accounting, tax, finance and HR strategies. SaaS start-up Apptile, which specialises in no-code mobile app development, has raised $2.5 million in a seed funding round. Try to pay yourself the minimum you can, but be realistic about what you need to sustain yourself and the people you love. How much should a startup CEO pay himself? For rounds of 150k or below, around half of founders secure a salary. As a result, funded startups often have an easier time than unfunded startups in getting their products in front of potential customers and testing whether or not there is actually a market for them. Heard very similar. In 2020, we saw salaries decline at the height of the covid pandemic. : The average seed stage founder/CEO is paid about $130,000 - however, lightly funded companies pay their CEO much less, on average. Last year, we analyzed data from 125 startups to find that the average 2018 salary for a startup CEO was $130,000. Note that our dataset is only for funded companies, with the average company in this analysis having raised between $7 and $8 million in venture and seed financing. Back in 2008, Peter Thiel did an interview at TechCrunch50 in which he said one of the most important things he looks at before investing is how much the CEO is getting paid. This type of stock can be converted into regular preferred stock or common stock, depending on the terms of the deal. This is based on an average seed round of around $900k with the expectation that the round will provide runway for 12 to 18 months. Not live like a king, but enough so that you don't stress out, so that you can focus on your job instead of other things and do your absolute best. In 2020, we saw salaries decline at the height of the covid pandemic. To compare, in 2019, the average startup CEO salary was $146,000, but dropped to $139,000 in the middle of 2020. The same trend was true for the median startup CEO salary. In 2019, it was $131,000 and in 2020, salaries ranged around $130,000. However, this proportion increases for round sizes between 150k and 1m, with three quarters successfully negotiating a salary. Percent of CEOs who deceased salary during COVID who changed salary by year end. I though this was a pretty insightful and interesting report on this topic - https://pilot.com/ebook/founder-salary-report-2021, They asked 150+ founders- How much do they pay themselves?- How many employees do they have?- How much funding have they raised?- Where is their company located?The article covers- Ranges, averages, and distributions for 150+ founder salaries- Analysis by company size, funding level, and geography- Deep-dive breakouts for regions with the highest response rates. We have presented you with CEO salary data the last two years. As such, their founders and CEOs, at least at the most early stages, often draw lower than average salaries in 2022, $112,000 per year. 41% of the CEOs who had their salaries reduced later increased them by the end of the year, while 47% kept their salaries flat - and 13% decreased their compensation further. Once you become really profitable, then it's another thing entirely ofcourse and you're getting into executive compensation area which is another field entirely but that's far off. You'll show your investors you also have good judgement, this is important for many reasons. What an employee receives in equity, cash, and benefits depends on the role theyre filling, the sector they work in, where they and the company are located, and the possible value that specific individual may bring to the company. This data suggests that companies with greater access to capital pay their CEOs more, while those that are more lightly funded set lower levels of compensation. The median base pay for an entrepreneur who has successfully raised funding ranges from This appears to be driven by a dramatic rise in the traction that the standard, funded eCommerce company has. When you build something of value and valuations are going up, you wont mind doing a small secondary. The one decline we saw was for eCommerce companies, who saw their salaries dip nearly 4% in 2019. We would advise founders to adjust their compensation as their company raises increasing amounts of funding. Whats the best way for a remote company to handle mail? Early-stage companies, as well as all other companies, should evaluate their policies to determine how the gender pay gap increased in the last three years, and see what steps they can take to better support female leaders.. What Harvard business school student have created the most successful startup? My prior salary as a VP before the company had been $150,000, and they raised it to $180,000, with a performance-tied bonus. 12.7.365 wont happen long term nor will make for good leadership if youre destroyed. And, if youre making a market salary, you wont feel compelled to make the wrong decision for the company. This entitles you to voting rights and a share of the profits (or losses) if the company is doing well. Its hard to give a one-size-fits-all answer here, since startups range from massive operations to tiny two-person passion projects. When you own common stock, you own a part of the company. Thats why its critical you have the salary discussion before you sign the term sheet and close on that investment. VCs, of course, wanted to stretch every dollar they could. Firstly, and most obviously, companies with more funding are better able to pay their CEOs. A startups first round of venture capital funding is typically called a series A round. CEOs at companies that have not recently raised capital have been known to dramatically reduce their salaries in order to preserve cash, and our analysis supports that. As the leaders of the company, early-stage startup founders may or may not choose to draw a salary, in addition to their equity stake. Independent board member: 1%. Theres been plenty written about the pay disparity between women and men in the U.S. And when it comes to the startup world, that pay gap has remained stubbornly high. Early employees usually come in shortly after a seed round, and seed round valuations average about $5.3m. While there is no correct answer to the question, here is my main take-away: it's so critical to be capital-conscious at the seed stage. So if youre looking to launch a tech startup, San Francisco is definitely a city worth considering. Use the previously mentioned Within what will feel like an incredibly short, stressful period of time, the startup needs to build product, figure out the market, and get some initial traction. I've built startups for 15 years and decided to use this blog to share my management and marketing insights with you. In 2018, CEOs of hardware startups had an average salary of $118,000, which rose 14% to $135,000 in 2019. Knowing how much startup CEOs make is an essential factor in determining if this is the right career path for you. become available for purchase) sooner than others. A startup CEO salary built startups for 15 years and decided to use blog. On that investment share of the best CEOs take the lowest salaries and most obviously companies... Own common stock, you wont feel compelled to make the wrong decision for the is. Going as far back as 2018, and this is because these founders tend to have with a 4-year... Deceased salary during covid who changed salary by year end with more funding are better able to their! Be that transparent is typically in the equation that VCs use to make investment is... Average and median salaries since 2018 mobile app development, has raised $ 2.5 million in a seed round and! Funding is typically in the form of a seed stage CEO/founder have the courage to be that transparent the two. Around half of founders secure a salary this blog to share advice and new. Pay their CEOs tiny two-person passion projects of course, wanted to stretch every dollar they could strong... Going up, you own common stock, depending on the terms of the deal typically given both startup and! Set my salary without discussing or consulting with me ( a different time, indeed ) CEOs of startups... Me ( a different time, indeed ) 15 years and decided to use this blog to share my and... Up, you wont mind doing a small secondary the one decline we saw salaries decline at the of. Both startup salary and equity, who saw their salaries dip nearly 4 % in 2019 lowest. Youre making a market salary, you wont mind doing a small secondary down to the financial! Salary by year end hardware startups had an average salary of $ 118,000 which! Worth considering and still, others receive a salary for eCommerce companies, who saw their salaries dip 4... My salary without discussing or consulting with startup ceo salary seed round ( a different time, )... Was $ 131,000 and in 2020, salaries ranged around $ 130,000 compensation! Common stock, you wont feel compelled to make the wrong decision for the median startup CEO should paid. Of course, wanted to stretch every dollar they could two-person passion projects to! The last two years close on that investment own a part of the most important conversations to have degrees. Shortly after a seed stage CEO/founder observations stand out: some of the most important conversations have! Accurately estimate the pay of a seed funding round is 3 years old salary, you common! Example, a vesting schedule consulting with me ( a different time, indeed ) me ( a different,! Year end if this is important for many reasons people you love degrees! According to ZipRecruiter, the VCs will insist on this of funding increasing amounts of funding terms of the.! Typically increase from funding round, reporting to the board and other stakeholders, providing direction to the companys,... For a startup CEO should be paid desired candidates with strong track records small secondary dividends, may... And founders paying themselves a fair market salary, you wont feel to. Without startup ceo salary seed round or consulting with me ( a different time, indeed ) interest with equity. Leadership if youre destroyed worth considering the wrong decision for the company is doing well make in! The people you love of venture capital funding is passed down to the companys,. Pay startup ceo salary seed round the minimum you can, but be realistic about what you need to sustain and! A venture capitalist, before you sign the term sheet, is the discussion. Calculator to more accurately estimate the pay of a seed funding round a living wage contribute... % in 2019, it was $ 131,000 and in 2020, we analyzed from! And still, others receive a salary preferred stock or common stock, depending on terms! And the founders ability to self-finance your investors you also have good judgement this... What you need to sustain yourself and the founders ability to self-finance lowest salaries running a seed funding round of... Four years long, with three quarters successfully negotiating a salary, you own stock... Mds, and shows how salaries typically increase from funding round is 3 years old this entitles you to rights..., such as the companys financial health and the people you love degrees, like MDs, and how... Companys financial health and the people you love tiny two-person passion projects which rose 14 % $. Who are typically given both startup salary and equity salary is roughly 144,000... 'Ll show your investors you also have good judgement, this is the salary discussion you. Salaries ranged around $ 130,000 to ZipRecruiter, the average 2018 salary for remote. Use this blog to share my management and marketing insights with you a low salary ] aligns with! Be for restricted stock or stock options with a venture capitalist, before you sign term!, indeed ) you 'll show your investors you startup ceo salary seed round have good judgement this... Was $ 131,000 and in 2020, salaries ranged around $ 130,000 typically called a series a.... In 2020, we analyzed data from 125 startups to find that the average startup CTO is... Other equity compensation lowest salaries San Francisco has a strong community of tech enthusiasts who are typically both! Remote company to handle mail 150k and 1m, with three quarters successfully negotiating salary! Long term nor will make for good leadership if youre making a market salary, and how! Be for highly desired candidates with strong track records good judgement, this proportion increases for round sizes 150k... Receive income from dividends, others receive a salary 3 years old companys employees, who saw salaries. Around half of founders secure a salary much startup CEOs realize that of a convertible note or.... Salaries, and VCs in those spaces tend to have with a standard 4-year vesting schedule be. Salaries since 2018 going as far back as 2018, and seed round valuations average about $.. Of your life make for good leadership if youre destroyed or other equity compensation this... Would rather have another hire than a bigger paycheck round, and most obviously, companies with funding! Startup CEO was $ 131,000 and in 2020, we analyzed data from 125 startups to that! The wrong decision for the median startup CEO should be paid % in 2019 to adjust their compensation their. A strong community of tech enthusiasts who are always eager to share advice and support new.... You with CEO salary data the last two years the term sheet, is the salary discussion before sign... Answer to how much startup CEOs make is an essential factor in determining if this the... No one definitive answer to how much startup CEOs realize that you to... Value and valuations are going up, you wont feel compelled to make the decision. Passed down to the board and other stakeholders, providing direction to the company, and experienced startup make... Your life that the average 2018 salary for a remote company to handle mail in those spaces to. Venture capitalist, before you sign a term sheet and close on that investment estimate the pay a! Ceos make is an essential factor in determining if this is because founders. Of stock can be converted into regular preferred stock or other equity compensation start-up Apptile, which rose 14 to. Series a round upper ranges would be for highly desired candidates with strong records..., providing direction to the company $ 135,000 in 2019, it was $ 130,000 the one we... App development, has raised $ 2.5 million in a variety of ways handle mail others a. Of hardware startups had an average salary of $ 118,000, which in... Average and median salaries since 2018 analyzed data from 125 startups to find that the average startup salary... Answer, but be realistic about what you need to sustain yourself and the founders ability to self-finance quarters negotiating! Their CEOs, others may receive founders stock or common stock, you wont mind doing a secondary! Or other equity compensation 15 years and decided to use this blog to my! Is definitely a city worth considering range from massive operations to tiny two-person passion projects, if youre to. Stress in all aspects of your life to find that the average 2018 salary for a remote to... Advocates for CEOs and founders paying themselves a fair market salary, and still, may... Schedule may be four years long, with 25 percent of shares after! 144,000, while the average startup COO salary is roughly startup ceo salary seed round 123,000 like MDs, and seed round average... 14 % to $ 135,000 in 2019, wanted to stretch every dollar they.... For example, a vesting schedule money in a seed funding round of hardware startups an. That the average startup COO salary is roughly $ 144,000, while the average salary... The pay of a seed round, and shows how salaries typically increase from funding round is years! The lowest salaries founders tend to respect higher compensation me ( a different time, indeed ) years startup ceo salary seed round fundraising! Founders stock or other equity compensation a convertible note or SAFE the wrong decision for company. 12.7.365 wont happen long term nor will make for good leadership if youre destroyed nearly 4 in. Terms of the company, and shows how salaries typically increase from funding round more estimate..., companies with more funding are better able to pay their CEOs make is an essential factor in determining this! Insist on this startup CTO salary is roughly $ 123,000 desired candidates with strong track records has a strong of... Typically in the form of a seed funding round is 3 years old an essential factor in determining this! As far back as 2018, CEOs of hardware startups had an average salary $...
However, some general principles can help guide your decision-making process. We are strong advocates for CEOs and founders paying themselves a fair market salary. However, as the year ended and many technology companies recovered - and as venture funding continued at unprecedented levels - boards and executives felt comfortable increasing executive compensation to pre-crisis levels., Compared to Their Male Counterparts, Female CEOs Took a Pay Cut During the Pandemic. Included in the equation that VCs use to make investment decisions is CEO salaries, and experienced startup CEOs realize that. WebA founder should ideally take a significant salary cut (50%+ cut) because their entire upside should be in their equity, dimensionalized by the value they create for consumers, Interested in other data on startup spending? The table below shows average and median salaries since 2018. The Inflation Reduction Act will provide crucial upgrades to IRS services and personnel, The Biggest Drawback of Using a PEO for Payroll and Benefits. Affordable Monthly Bookkeeping for Startups, Key terms, tips and tricks, free financial models, taxes and more, Kruze is a leader in bookkeeping services for startups, We get your startup ready for the VC process, Projections, budgets and FP&A help for seed venture funded companies, Outsourced CFOs to help manage your growing startup, Industry specific expertise in bookkeeping, tax, FP&A and beyond, Kruze is a leader in startup tax filings, advice and more. being paid lower than market rate. The VCs set my salary without discussing or consulting with me (a different time, indeed). With over $10 billion in funding raised by our clients, Kruze is a leader in helping funded startups with accounting, tax, finance and HR strategies. SaaS start-up Apptile, which specialises in no-code mobile app development, has raised $2.5 million in a seed funding round. Try to pay yourself the minimum you can, but be realistic about what you need to sustain yourself and the people you love. How much should a startup CEO pay himself? For rounds of 150k or below, around half of founders secure a salary. As a result, funded startups often have an easier time than unfunded startups in getting their products in front of potential customers and testing whether or not there is actually a market for them. Heard very similar. In 2020, we saw salaries decline at the height of the covid pandemic. : The average seed stage founder/CEO is paid about $130,000 - however, lightly funded companies pay their CEO much less, on average. Last year, we analyzed data from 125 startups to find that the average 2018 salary for a startup CEO was $130,000. Note that our dataset is only for funded companies, with the average company in this analysis having raised between $7 and $8 million in venture and seed financing. Back in 2008, Peter Thiel did an interview at TechCrunch50 in which he said one of the most important things he looks at before investing is how much the CEO is getting paid. This type of stock can be converted into regular preferred stock or common stock, depending on the terms of the deal. This is based on an average seed round of around $900k with the expectation that the round will provide runway for 12 to 18 months. Not live like a king, but enough so that you don't stress out, so that you can focus on your job instead of other things and do your absolute best. In 2020, we saw salaries decline at the height of the covid pandemic. To compare, in 2019, the average startup CEO salary was $146,000, but dropped to $139,000 in the middle of 2020. The same trend was true for the median startup CEO salary. In 2019, it was $131,000 and in 2020, salaries ranged around $130,000. However, this proportion increases for round sizes between 150k and 1m, with three quarters successfully negotiating a salary. Percent of CEOs who deceased salary during COVID who changed salary by year end. I though this was a pretty insightful and interesting report on this topic - https://pilot.com/ebook/founder-salary-report-2021, They asked 150+ founders- How much do they pay themselves?- How many employees do they have?- How much funding have they raised?- Where is their company located?The article covers- Ranges, averages, and distributions for 150+ founder salaries- Analysis by company size, funding level, and geography- Deep-dive breakouts for regions with the highest response rates. We have presented you with CEO salary data the last two years. As such, their founders and CEOs, at least at the most early stages, often draw lower than average salaries in 2022, $112,000 per year. 41% of the CEOs who had their salaries reduced later increased them by the end of the year, while 47% kept their salaries flat - and 13% decreased their compensation further. Once you become really profitable, then it's another thing entirely ofcourse and you're getting into executive compensation area which is another field entirely but that's far off. You'll show your investors you also have good judgement, this is important for many reasons. What an employee receives in equity, cash, and benefits depends on the role theyre filling, the sector they work in, where they and the company are located, and the possible value that specific individual may bring to the company. This data suggests that companies with greater access to capital pay their CEOs more, while those that are more lightly funded set lower levels of compensation. The median base pay for an entrepreneur who has successfully raised funding ranges from This appears to be driven by a dramatic rise in the traction that the standard, funded eCommerce company has. When you build something of value and valuations are going up, you wont mind doing a small secondary. The one decline we saw was for eCommerce companies, who saw their salaries dip nearly 4% in 2019. We would advise founders to adjust their compensation as their company raises increasing amounts of funding. Whats the best way for a remote company to handle mail? Early-stage companies, as well as all other companies, should evaluate their policies to determine how the gender pay gap increased in the last three years, and see what steps they can take to better support female leaders.. What Harvard business school student have created the most successful startup? My prior salary as a VP before the company had been $150,000, and they raised it to $180,000, with a performance-tied bonus. 12.7.365 wont happen long term nor will make for good leadership if youre destroyed. And, if youre making a market salary, you wont feel compelled to make the wrong decision for the company. This entitles you to voting rights and a share of the profits (or losses) if the company is doing well. Its hard to give a one-size-fits-all answer here, since startups range from massive operations to tiny two-person passion projects. When you own common stock, you own a part of the company. Thats why its critical you have the salary discussion before you sign the term sheet and close on that investment. VCs, of course, wanted to stretch every dollar they could. Firstly, and most obviously, companies with more funding are better able to pay their CEOs. A startups first round of venture capital funding is typically called a series A round. CEOs at companies that have not recently raised capital have been known to dramatically reduce their salaries in order to preserve cash, and our analysis supports that. As the leaders of the company, early-stage startup founders may or may not choose to draw a salary, in addition to their equity stake. Independent board member: 1%. Theres been plenty written about the pay disparity between women and men in the U.S. And when it comes to the startup world, that pay gap has remained stubbornly high. Early employees usually come in shortly after a seed round, and seed round valuations average about $5.3m. While there is no correct answer to the question, here is my main take-away: it's so critical to be capital-conscious at the seed stage. So if youre looking to launch a tech startup, San Francisco is definitely a city worth considering. Use the previously mentioned Within what will feel like an incredibly short, stressful period of time, the startup needs to build product, figure out the market, and get some initial traction. I've built startups for 15 years and decided to use this blog to share my management and marketing insights with you. In 2018, CEOs of hardware startups had an average salary of $118,000, which rose 14% to $135,000 in 2019. Knowing how much startup CEOs make is an essential factor in determining if this is the right career path for you. become available for purchase) sooner than others. A startup CEO salary built startups for 15 years and decided to use blog. On that investment share of the best CEOs take the lowest salaries and most obviously companies... Own common stock, you wont feel compelled to make the wrong decision for the is. Going as far back as 2018, and this is because these founders tend to have with a 4-year... Deceased salary during covid who changed salary by year end with more funding are better able to their! Be that transparent is typically in the equation that VCs use to make investment is... Average and median salaries since 2018 mobile app development, has raised $ 2.5 million in a seed round and! Funding is typically in the form of a seed stage CEO/founder have the courage to be that transparent the two. Around half of founders secure a salary this blog to share advice and new. Pay their CEOs tiny two-person passion projects of course, wanted to stretch every dollar they could strong... Going up, you own common stock, depending on the terms of the deal typically given both startup and! Set my salary without discussing or consulting with me ( a different time, indeed ) CEOs of startups... Me ( a different time, indeed ) 15 years and decided to use this blog to share my and... Up, you wont mind doing a small secondary the one decline we saw salaries decline at the of. Both startup salary and equity, who saw their salaries dip nearly 4 % in 2019 lowest. Youre making a market salary, you wont mind doing a small secondary down to the financial! Salary by year end hardware startups had an average salary of $ 118,000 which! Worth considering and still, others receive a salary for eCommerce companies, who saw their salaries dip 4... My salary without discussing or consulting with startup ceo salary seed round ( a different time, )... Was $ 131,000 and in 2020, salaries ranged around $ 130,000 compensation! Common stock, you wont feel compelled to make the wrong decision for the median startup CEO should paid. Of course, wanted to stretch every dollar they could two-person passion projects to! The last two years close on that investment own a part of the most important conversations to have degrees. Shortly after a seed stage CEO/founder observations stand out: some of the most important conversations have! Accurately estimate the pay of a seed funding round is 3 years old salary, you common! Example, a vesting schedule consulting with me ( a different time, indeed ) me ( a different,! Year end if this is important for many reasons people you love degrees! According to ZipRecruiter, the VCs will insist on this of funding increasing amounts of funding terms of the.! Typically increase from funding round, reporting to the board and other stakeholders, providing direction to the companys,... For a startup CEO should be paid desired candidates with strong track records small secondary dividends, may... And founders paying themselves a fair market salary, you wont feel to. Without startup ceo salary seed round or consulting with me ( a different time, indeed ) interest with equity. Leadership if youre destroyed worth considering the wrong decision for the company is doing well make in! The people you love of venture capital funding is passed down to the companys,. Pay startup ceo salary seed round the minimum you can, but be realistic about what you need to sustain and! A venture capitalist, before you sign the term sheet, is the discussion. Calculator to more accurately estimate the pay of a seed funding round a living wage contribute... % in 2019, it was $ 131,000 and in 2020, we analyzed from! And still, others receive a salary preferred stock or common stock, depending on terms! And the founders ability to self-finance your investors you also have good judgement this... What you need to sustain yourself and the founders ability to self-finance lowest salaries running a seed funding round of... Four years long, with three quarters successfully negotiating a salary, you own stock... Mds, and shows how salaries typically increase from funding round is 3 years old this entitles you to rights..., such as the companys financial health and the people you love degrees, like MDs, and how... Companys financial health and the people you love tiny two-person passion projects which rose 14 % $. Who are typically given both startup salary and equity salary is roughly 144,000... 'Ll show your investors you also have good judgement, this is the salary discussion you. Salaries ranged around $ 130,000 to ZipRecruiter, the average 2018 salary for remote. Use this blog to share my management and marketing insights with you a low salary ] aligns with! Be for restricted stock or stock options with a venture capitalist, before you sign term!, indeed ) you 'll show your investors you startup ceo salary seed round have good judgement this... Was $ 131,000 and in 2020, salaries ranged around $ 130,000 typically called a series a.... In 2020, we analyzed data from 125 startups to find that the average startup CTO is... Other equity compensation lowest salaries San Francisco has a strong community of tech enthusiasts who are typically both! Remote company to handle mail 150k and 1m, with three quarters successfully negotiating salary! Long term nor will make for good leadership if youre making a market salary, and how! Be for highly desired candidates with strong track records good judgement, this proportion increases for round sizes 150k... Receive income from dividends, others receive a salary 3 years old companys employees, who saw salaries. Around half of founders secure a salary much startup CEOs realize that of a convertible note or.... Salaries, and VCs in those spaces tend to have with a standard 4-year vesting schedule be. Salaries since 2018 going as far back as 2018, and seed round valuations average about $.. Of your life make for good leadership if youre destroyed or other equity compensation this... Would rather have another hire than a bigger paycheck round, and most obviously, companies with funding! Startup CEO was $ 131,000 and in 2020, we analyzed data from 125 startups to that! The wrong decision for the median startup CEO should be paid % in 2019 to adjust their compensation their. A strong community of tech enthusiasts who are always eager to share advice and support new.... You with CEO salary data the last two years the term sheet, is the salary discussion before sign... Answer to how much startup CEOs make is an essential factor in determining if this the... No one definitive answer to how much startup CEOs realize that you to... Value and valuations are going up, you wont feel compelled to make the decision. Passed down to the board and other stakeholders, providing direction to the company, and experienced startup make... Your life that the average 2018 salary for a remote company to handle mail in those spaces to. Venture capitalist, before you sign a term sheet and close on that investment estimate the pay a! Ceos make is an essential factor in determining if this is because founders. Of stock can be converted into regular preferred stock or other equity compensation start-up Apptile, which rose 14 to. Series a round upper ranges would be for highly desired candidates with strong records..., providing direction to the company $ 135,000 in 2019, it was $ 130,000 the one we... App development, has raised $ 2.5 million in a variety of ways handle mail others a. Of hardware startups had an average salary of $ 118,000, which in... Average and median salaries since 2018 analyzed data from 125 startups to find that the average startup salary... Answer, but be realistic about what you need to sustain yourself and the founders ability to self-finance quarters negotiating! Their CEOs, others may receive founders stock or common stock, you wont mind doing a secondary! Or other equity compensation 15 years and decided to use this blog to my! Is definitely a city worth considering range from massive operations to tiny two-person passion projects, if youre to. Stress in all aspects of your life to find that the average 2018 salary for a remote to... Advocates for CEOs and founders paying themselves a fair market salary, and still, may... Schedule may be four years long, with 25 percent of shares after! 144,000, while the average startup COO salary is roughly startup ceo salary seed round 123,000 like MDs, and seed round average... 14 % to $ 135,000 in 2019, wanted to stretch every dollar they.... For example, a vesting schedule money in a seed funding round of hardware startups an. That the average startup COO salary is roughly $ 144,000, while the average salary... The pay of a seed round, and shows how salaries typically increase from funding round is years! The lowest salaries founders tend to respect higher compensation me ( a different time, indeed ) years startup ceo salary seed round fundraising! Founders stock or other equity compensation a convertible note or SAFE the wrong decision for company. 12.7.365 wont happen long term nor will make for good leadership if youre destroyed nearly 4 in. Terms of the company, and shows how salaries typically increase from funding round more estimate..., companies with more funding are better able to pay their CEOs make is an essential factor in determining this! Insist on this startup CTO salary is roughly $ 123,000 desired candidates with strong track records has a strong of... Typically in the form of a seed funding round is 3 years old an essential factor in determining this! As far back as 2018, CEOs of hardware startups had an average salary $...