The Truth About Startup Founders' Salaries

Summary

В этом видео рассматривается, почему основатели стартапов делятся информацией о больших суммах, полученных их компанией, но молчат о собственных доходах. Разбирается концепция 'рамен-доходности', согласно которой основатели живут на минимуме, чтобы все средства шли на развитие бизнеса. Обсуждается, как основатели определяют свою зарплату после привлечения инвестиций, и какие факторы влияют на этот выбор. Также затрагиваются темы о том, как основатели могут стать богатыми через IPO или продажу долей и как они справляются с финансовыми трудностями и эмоциональными взлетами и падениями на пути к успеху.

Takeaways

• 💡 Основатели стартапов часто получают минимальную зарплату или вообще не получают её, чтобы максимально инвестировать в развитие своего бизнеса.
• 🚀 Термин «раменная прибыльность» означает, что стартап может быть прибыльным, даже если его доходы составляют всего 3000 долларов в месяц, благодаря минимальным расходам основателей.
• 📉 Низкая зарплата генерального директора считается предиктором успеха стартапа, поскольку это демонстрирует преданность проекту и синхронизацию интересов с держателями акций.
• 🤑 Основатели начинают получать зарплату, обычно после привлечения финансирования на стадии seed round, при этом размер зарплаты может зависеть от множества факторов.
• 💰 В США средняя зарплата основателя после привлечения инвестиций составляет около 75 тыс. долларов в год при финансировании свыше 100 тыс. долларов и до 150 тыс. долларов при финансировании свыше 5 млн долларов.
• 🔍 Факторы, влияющие на размер зарплаты основателя, включают отрасль компании, пол основателя, семейное положение и количество сооснователей.
• 🌟 Основатели могут стать богатыми в результате IPO или продажи части своих акций через вторичные рынки, что является распространенной практикой после Series A раунда.
• 💼 Управление неопределенностью и эмоциональным благополучием является ключом к успеху для основателей, преодолевающих финансовые и личные трудности на пути к успеху стартапа.
• 📈 Важность прозрачности и открытого обсуждения финансовых вопросов с инвесторами для определения адекватного уровня зарплаты основателей.
• 🛠️ Использование инструментов, таких как Jun Doo, для лучшего понимания потребностей и поведения пользователей может способствовать уменьшению неопределенности и повышению успеха стартапа.

Q & A

Почему основатели стартапов не любят делиться информацией о своих личных доходах?

Основатели стартапов предпочитают держать в секрете информацию о своих личных финансах, чтобы сосредоточить внимание на финансировании и росте компании, а не на личном обогащении.

Что такое «раменная прибыльность» и кто ввел это понятие?

«Раменная прибыльность» — это состояние, когда стартап может существовать на минимальном уровне доходов, достаточных для покрытия жизни основателей, похожей на жизнь студентов, питающихся раменом. Понятие ввел Пол Грэм.

Почему низкая зарплата CEO считается индикатором успеха стартапа?

Питер Тиль считает, что низкая зарплата CEO является индикатором успеха стартапа, так как это показывает, что основатели фокусируются на росте компании и её ценностях, а не на личном обогащении.

Как изменение подхода к зарплатам основателей отражает отношение инвесторов к стартапам?

Современные инвесторы понимают, что основатели не могут эффективно сосредотачиваться на бизнесе, если они испытывают финансовые трудности, и готовы обсуждать зарплаты, обеспечивая их финансовую стабильность.

Что такое «ловушка зависимости от зарплаты» для основателей стартапов?

Это ситуация, когда основатели начинают сравнивать краткосрочные финансовые выгоды от других видов деятельности с долгосрочными перспективами своего стартапа, что ведёт к уменьшению их фокуса на развитии стартапа.

Какие факторы влияют на зарплату основателей стартапа?

На зарплату основателей влияют множество факторов, включая финансирование компании, локацию, отрасль, гендер основателя и семейное положение.

Как основатели стартапов могут стать богатыми, несмотря на низкие зарплаты?

Основатели могут стать богатыми через продажу акций на вторичном рынке (secondaries) или при выходе компании на IPO, когда стоимость их доли в компании резко возрастает.

Что означает понятие «secondaries» в контексте стартапов?

«Secondaries» — это продажа небольшой части акций основателями до выхода компании на IPO или её продажи, что позволяет им обеспечить личные финансовые потребности без потери значительной доли в бизнесе.

Как основатели стартапов могут управлять неопределённостью и стрессом?

Основатели могут снижать стресс и неопределённость через практику медитации, планирование на разные сценарии, учебный подход к неудачам и создание системы поддержки среди единомышленников.

Какова роль инструмента June для стартапов, упомянутого в тексте?

June — это продукт, предназначенный для анализа поведения пользователей продукта стартапа, помогающий понять, что нравится пользователям и как улучшить продукт, чтобы увеличить их вовлечённость и лояльность.

Outlines

00:00

🤑 Открытие зарплат основателей стартапов

В этом разделе обсуждается, почему основатели стартапов редко делятся информацией о своих доходах, несмотря на открытое обсуждение финансирования их компаний. Алекс, как пример основателя, оставляет за собой непредсказуемость и риски в обмен на возможность преследовать свою мечту. Видео планирует исследовать реальные доходы основателей, сравнивая их с общедоступными бенчмарками, и рассматривает, как основатели переживают финансовые взлеты и падения. Также подчёркивается концепция 'раменной прибыльности' Пола Грэма, согласно которой стартап может считаться прибыльным, если его основатели могут минимизировать свои расходы, а зарплата CEO устанавливает лимит для остальной команды, по мнению Питера Тиля.

05:00

💰 Зарплаты основателей и их зависимость от финансирования

Здесь рассматриваются конкретные цифры зарплат основателей стартапов в зависимости от объёма привлечённых средств и географии, с упором на различия между США и Европой. Указывается, что основатели обычно начинают с низких зарплат, чтобы сохранить ресурсы для развития компании, но с ростом финансирования могут позволить себе более высокие выплаты. Обсуждаются также другие факторы, влияющие на размер зарплаты, включая отрасль компании, пол основателей и их семейное положение. Помимо этого, подчеркивается значение открытого обсуждения зарплат с инвесторами и проблематика 'ловушки зарплатной зависимости', когда основатели сталкиваются с трудностями из-за сравнения доходов от стартапа с другими видами заработка.

10:01

🚀 Путь к богатству через стартапы

В последнем разделе исследуются способы, которыми основатели стартапов могут обогатиться, несмотря на начальные низкие зарплаты. Основными механизмами являются выход на IPO и продажа части акций (вторичные сделки) до момента выхода. Рассматриваются реальные примеры значительных доходов от продажи акций и IPO, а также условия, при которых основатели могут продавать свои доли. Видео подчёркивает важность поддержания фокуса и решимости на протяжении всего пути стартапа, несмотря на финансовые трудности и неопределённость.

15:02

🌟 Эмоциональное благополучие основателей на пути к успеху

Этот раздел затрагивает эмоциональные и психологические аспекты управления стартапом. Обсуждается, как основатели стартапов справляются с неопределённостью, включая стратегии построения резилиентности и поддержки. Подчёркивается важность образования поддерживающего окружения и разработки планов на случай различных финансовых сценариев. Видео подсказывает, как основателям удерживать баланс между сохранением финансовых ресурсов для развития компании и обеспечением собственного финансового и эмоционального благополучия.

Keywords

💡Startup Founders

Startup Founders are individuals who establish and lead new businesses, often taking on significant financial and personal risk to pursue their entrepreneurial dreams. In the context of the video, Founders may initially take low or no salaries (referred to as 'ramen profitability') to allocate resources towards the growth of their venture. The video discusses the financial challenges and strategies of Founders, highlighting their commitment and the potential for wealth creation through successful exits such as IPOs or acquisitions.

💡Ramen Profitability

Ramen profitability is a term used to describe a startup's ability to generate enough revenue to cover the founders' basic living expenses, akin to surviving on a diet of inexpensive ramen noodles. This concept emphasizes the founders' dedication to reinvesting resources back into the company rather than taking substantial salaries, thereby fostering growth and demonstrating commitment to the venture.

💡VC Funding

Venture Capital (VC) funding refers to the financial investments made by venture capitalists in startups or early-stage companies perceived to have high growth potential. VCs typically provide not only capital but also mentorship and industry connections, in exchange for equity in the company. The video discusses how raising VC funding can enable Founders to compensate themselves better and focus on scaling their businesses.

💡Salary Addiction Trap

The 'salary addiction trap' is a situation where founders working on their startups in parallel with high-paying jobs become discouraged by the slow progress of their venture compared to the immediate financial rewards of their regular employment. This can lead to a reduction in commitment to the startup and potentially its failure due to lack of sufficient time and resources.

💡Equity

Equity in the context of startups refers to the ownership interest in the company held by its shareholders, including founders, employees, and investors. Equity is often the primary way founders can become wealthy, as it represents their share of the company's future value, which can increase significantly if the startup succeeds and is sold or goes public.

💡IPO (Initial Public Offering)

An Initial Public Offering (IPO) is the process by which a private company goes public by offering its shares to the general public for the first time. This is a significant milestone for startups as it allows them to raise capital and provides liquidity for their shareholders, including founders, to realize part of their investment.

💡Secondaries

Secondary sales, or 'secondaries,' refer to the sale of a portion of a founder's or early employee's equity stake in a company before it goes public or is acquired. This allows the individual to cash out a part of their investment and reduce financial stress, while still retaining a share in the company's potential future success.

💡Runway

In the startup world, 'runway' refers to the amount of time a company can continue to operate before it runs out of cash and needs to secure additional funding. It is a critical metric for understanding the financial health and strategic planning of a startup, as it dictates how much time the founders have to achieve their business goals or find new investors.

💡Emotional Well-being

Emotional well-being in the context of entrepreneurship refers to the mental and emotional health of founders as they navigate the challenges and stressors associated with building a startup. Maintaining emotional well-being is crucial for long-term success and the ability to cope with uncertainty, setbacks, and the intense emotional roller coaster of running a business.

💡Customer Understanding

Understanding customers is a fundamental aspect of running a successful startup. It involves gaining deep insights into customer needs, preferences, and behaviors to create products or services that truly resonate with the target market. Effective customer understanding can lead to better product decisions, increased user engagement, and ultimately, business growth.

Highlights

Startup founders often don't discuss their personal earnings despite being open about their company's funding.

Founders may choose to live on a 'ramen noodle salary', putting all resources into their venture and showing commitment to growth.

Low founder salaries can be a predictor of startup success, as it aligns their interests with equity holders and keeps the company lean.

Ramen profitability, a concept by Paul Graham, means that a startup can grow by reinvesting resources instead of paying high salaries.

Founders may face a 'salary addiction trap', where they compare their startup progress with short-term, high-paying jobs, leading to a slowdown in their venture.

Once a Series A round is raised, founders typically begin to compensate themselves more fairly, but the amount can vary greatly.

Founder salaries can depend on factors such as company funding, location, industry, gender, and family situation.

Bootstrapping founders without significant savings may choose not to take a salary, relying on their savings and potentially putting their company's expenses on the company's account.

Founders can become wealthy through IPOs, secondary sales of equity, or acquisitions, rather than just their annual salary.

The key to navigating the financial journey of a startup is understanding and embracing uncertainty, and having strategies to manage it.

Founders should consider their 'runway', or the time before needing additional funding, and manage their spending and resources accordingly.

Building a strong emotional foundation and support system is crucial for founders to handle the intense emotional roller coaster of starting a business.

Founders should track their progress and customer satisfaction to reduce uncertainty and make informed decisions about their product or service.

The journey of a founder often involves starting over and embracing the struggle as part of the process towards eventual success.

Founders should be open with their team about their financial situation to foster understanding and collaboration within the company.

Reducing social pressure by explaining the importance of support during tough times can help founders manage their emotional wealth.

The real chance for founders to earn significant money comes from company exits, such as sales or IPOs, rather than regular salaries.

Founders should not hesitate to have a healthy conversation around salary with their investors to ensure they can focus on growing the business.

Transcripts

imagine you're scrolling online and you

see startup fers celebrating because

they just got a bunch of money for their

company it looks awesome but then you

notice there is something they don't

talk much about how much money the

founders actually make it's like there's

a secret that no one is talking about

even though everything else is out in

the open why do startups Founders share

all about the big money their company

gets but keep it quiet about their own

financials let's find it together let's

talk about Alex who swapped a CO of his

gig for the white ride of launching a

startup is living behind the world of

predictable paychecks for a venture

where salary is a big question mark this

isn't just about cutting back on fancy

coffees or skipping vacations it's about

chasing a dream which is so big that

it's scary today we're getting real

about what startup Thunders from VCB

startups like Alex or myself are making

in this video I'm going to confront

funer salary benchmarks you can find

online with salaries from Founders that

I interviewed including mine will study

Founders who became Rich to understand

how they did it and we're also going to

see how funders survive through these

financials up and down let's dive into

the truth behind funders

salaries when thinking of founder pay

the first thing that comes to mind is

the ramen noodle salary essentially this

means that the company can grow because

the founders are putting all of their

resources into the Venture they pay

themselves no salaries or at least the

bare minimum which in this case is

enough to cover the cost of ramen

noodles Paul Graham calls this Ramen

profitability is said a startup can

become Ramen profitable after 2 months

even though its revenues are only 3,000

bucks a month because the only employees

are a couple of 25 years old Founders

who can live on practically nothing

throughout the journey to become Ramen

profitable a low salary or no salary

shows that the founders are committed to

their startup and are risking it all

rather than taking a salary they're

using the funds to keep growing and

hitting Milestones entrepreneur and

venture capitalist Peter t once said

that the best predictor of a startup

success is a low CEO pay he also says

that the founders salaries create a

precedent the COO salary sets a cap for

everyone else if it is set at the eye

level you end up burning a whole lot

more money it aligns his interest with

the equity holders but beyond that it

goes to whether the mission of the

company is to build something new or

just collect paychecks there are few

obuse advantages to companies that are

ramen profitable they get better terms

when fundraising they're disciplined

enough to keep expenses low they keep a

good moral and they have a strong

ability to focus on the product and

services rather than fundraising but

let's take this advice with a bit of

distance old fashion investors may still

have this idea that Founders should stve

themselves and that their funding should

be used to grow the company only modern

investors understand that star Founders

cannot focus on the business if they

cannot make rent

even as a preced Founder you shouldn't

hesitate to have a healthy conversation

around salary with your investors so

what happens if you do need a salary you

can't live on Ramen forever and it's an

expensive world out there typically once

the seid round is raised Founders are

then able to compensate

themsel let's say you hit the my Stones

yes have great Matrix ate a lot of

noodles decided to take the pass of

being VC backed and ultimately raise the

preed red round

now you can afford to pay yourself but

should you do it if so how much should

you pay yourself how much do other

Founders pay themselves before we move

to salaries I want to touch on what I

call the salary addiction trap the

salary addiction trap is when fresh

Founders work on startups in parallel to

short-term rewarding activities and

start to compare them for one hour

invested in their dream startup almost

nothing happens it's like pushing a

boulder up ill but when working on

activities with short-term results like

a full-time job or Contracting they can

make up to 200 bucks an hour as they

pursue multiple activities in parallel

the progress on the startup ID slows

down as things get harder on one end and

easier on the other end a vicious cycle

kicks in and the boulder becomes bigger

and bigger eventually the fresh Founders

who may be working on a great idea will

drop it while all it needed was more

work this in a nutshell is the salary

addiction trap I'm not saying that all

startups ideas are worth pursuing and

leaving a job for but rather that

without intense dedication most

successful startups wouldn't exist today

and it is precisely to have that trap

that most Founders pay themselves

salaries Founders salaries went up in

the last couple of years but Founders at

raise aren't supposed to get rich on

their annual salary in a VCB company

your company valuation is anticipated

and you have to grow within it at this

stage most Founders don't assume that

they made it nor that they should have

the salary of a senior employee a tech

company let's say they consider their

salaries as a way to keep them

financially stable and get some space to

focus on their company so how much money

is that in the US the short answer is

around $75k per year above 100K raised

150k doll above 5 million raise in the

EU it's lower below 50k EUR below 1

million and 150k only happens when 50

millions are raised these numbers came

from a bunch of amazing Founders were

kind in enough to share their salaries

and funny enough it aligns with my

salary which are recently shared

publicly funer salaries do not only

depend on the company funding and

location they can also depend on the

company industry Healthcare and biotech

Founders pays 20% higher on average than

Tas funders for instance the gender of

the founder sadly gender inequalities is

true also in funer salaries and women

Founders pay themselves nearly 25% less

than their male counterparts or the

founders family situation having kids or

not but also has an influence typically

10K for each kid that you have other

factors might include the number of

co-founders that are part of the company

so when you're coming up with your

salary you might be mindful of all these

criterias hey real quick that product

You're Building let me show you can 10x

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specify a design API product that helps

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used June to increase by 20% the amount

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a link in the description I hope you

guys enjoy the rest of the video take

care some Founders don't give themselves

any salaries this is becoming more

common because of the current

environment or by choice this is almost

systematically the case for Founders

when they start this is what Grant from

t.tv or Umberto from rose.com two VCB

companies by some prestigious investors

told me it was also the case for Josh

from refal Rock a bootstrap company but

when they're later in their Journeys

Founders who don't pays have to rely on

their savings this works well for

multitime Founders who put significant

savings on the side and can use that as

a lever to delute less and this is why

you see so many Founders that bootstrap

their business when it's the second or

the third business they start for those

without big savings and experience it

can feel like you're paying double the

price this is what Grant from TAA shared

with me he said that they should have

taken a salary earlier he and his

co-founders burn through their savings

plus later they had moments where a bit

of extra cash would have made things

more comfortable both working like crazy

and burning your savings is often a past

to frustration the other possibility is

to put your expenses on your company's

account depending on the country and the

lows there it may be more or less

possible like in the US you may pay

expense part of your apartment dedicated

to work if you're company's remote but

this is always Limited in some instances

overall I've seen the no salary path

adding more pressure on Founders if you

don't have significant savings and if

you raise capital I would always

recommend paying yourself what you need

to be confortable so that you can focus

on doing a great job at your startup if

you're worried about paying bills next

month that's not healthy the warning I

reive the most from Founders is

regretting paying thems under the market

for instance Mike from grain a Founder I

love shared that I regret paying myself

so much on the market for so long

burning through savings to get the

company of the ground only added to my

risk of burnout to Define your salary

Rajiv the CEO of product tant shared a

nice framing with me he said pretend

you're hiring yourself as an employee

how much would you pay that employee so

that they can do the best work and

aren't distracted by Financial stress

both are really great advice now let's

see a very different approach to

salaries salaries are the biggest cash

burn for a startup this is the most

rational reason why it is not advised to

funders to comp compensate thems heavily

at the early stages the higher salaries

the funders take the fewer available

resources there are for growth but let's

be honest some people made building a

startup a lifestyle they raise millions

they get four years plus of Runway they

execute for two eventually they pivot

for the next Trend nft AI you name it or

they shut down the company Return part

of the cash they raise and raise from

another investor I've seen situations

where s s funders have a total

compensations of 200k do per year plus

or pay expense for the apartment for 10K

plus per month some people are just good

at raising cash straing too far above

these salaries can act as a red flag to

investors particularly in the early

stage but in the end it's a negotiation

so if you want a high salary and your

board is comfortable with that there are

all kind of

possibilities right so if Founders pay

themselves between 50k in the beginning

and 150 after 3 or four years in how do

they become rich the first answer is

IPOs you will make bank if and when you

company exits based on how much Equity

you still have at that point the medium

payday at IPO in the US sits at

268 Millions the second way is

secondaries if your startup is doing

well it's common for Founders to sell a

small slice of their Equity before an

exit this is what we call secondaries

and it's increasingly common post series

a in most situations secondaries are a

useful tool to elevate Financial stress

from the founders especially as IPO now

takes 10 years to happen and investors

can be happy about them too at what

condition can the founder exercise

secondaries Brian aligan the co-founder

of Ops spot shared his rule of thumb if

the valuation is more than $100 million

and the company is doing 8 to 10

millions in revenue or more and the

founder sells less than 5% of the Ying

then this is probably a good idea if it

makes things less stressful for the

funders that's better for everyone if

the funders is selling more than 5%

that's where we some if you think you're

building a unicorn why would you sell

more than 5% of your shares at a tenth

of the exit price I wanted to share

Brian's advice cuz I feel it's a good

Baseline but I wouldn't do funders a

favor saying it's the norm not every

funders wait for that condition to exit

secondaries I've seen Founders exiting a

million each at a series a for instance

if your company is valued at

and stocks made its Founders Kevin cyrm

and Mike kriger extremely wealthy cyrm

held about a 40% stake and crigger about

10% the value of their Facebook stock

increased significantly as Facebook

stocks price Rose over the years Tony

fadel's Nest was acquired by Google for

3.2 billion while already lucrative the

deals value for fadle and his team also

came in the form of Google stocks which

appreciated in value over time in Europe

the French company Captain train sold in

March 2016 to the British competitor

train line for 180 million half in cash

half in shares it is said that the

founders of Captain train made four

times more money from the train line

stocks than from the cash they took when

selling their

company throughout your journey from

Ramen profitability then raising rounds

you're going to experience a lot of

uncertainty the possibilities upward are

endless with IPOs or Acquisitions and

the checkpoints are possible with

secondaries but how do you navigate that

Journey how do you go through situations

that can take a significant toll on you

like having no salary low salary or just

having a significant salary cut the key

is to realize that uncertainty is part

of the startup Journey Ben or ofit

captures this Essence by urging Founders

to embrace the struggle to navigate

uncertainty more comfortably you can

link into resilience building practices

like mindfulness or scenario planning

but both help maintain foruse and

prepare for various outcomes you may

Embrace a learning mindset too where

every setback is viewed as a lesson this

can help to transform uncertainty from a

source of stress to a catalyst for your

growth the next piece is to navigate

your Runway think of your startups

Runway as the amount of time you can

keep things running before you need more

cash it's like a clock ticking down

showing your urgent it is to make your

business work or find new money to get

confy with this it's all about three

things one is to keep a close eye on

your spending and knowing where every

dollar goes the second one is being

smart about your money and the last one

that helps is to have a plan B for money

like finding more investors just in case

being open with your team about how much

cash you've got left can help everyone

understand the situation and work

together to make that money last it can

also reduce the pressure on YouTube and

of course the best way to deal with

uncertainty is simply to address it

funders can cut done on uncertainty by

really getting to know their customers

and the market making sure the product

or Services hit the mark measuring

things is among the best way to reduce

uncertainty and startups can typically

use a tool like Jun Doo to understand

what their users like about the product

and make decisions accordingly

throughout this roller coaster emotions

will be all around a guarantee but you

can manage your emotional wealth by

creating a support system of like-minded

individuals who understand the roller

coaster you're going through a couple of

things that work for me get a coach to

engage in Founders group or journaling

or sharing experiences publicly like

this exact video reducing social

pressure is also crucial this could work

by explaining to friends and family the

importance of their support during tough

times it's about finding people who will

be there during the low not just the

eyes and who can offer constructive

feedback if you off track the Journey of

a Founder often involves going back to

square one and that's okay it's part of

the process to about eventual success

and having a strong emotional Foundation

makes all the

difference at the start many Founders

barely pays enough to live on kind of

like living on instant noodles this is

to keep the business running with

whatever little money they have once

they get some investment they can start

paying themsel a bit better but it's

still not crazy money it's all about

keeping the business growing and not

splurging on thems the real chance to

eat the jackpot comes if the company

gets sold goes public or by selling

secondaries on top of figuring out money

stuff founders also have to deal with

tons of ups and downs making the journey

pretty intense it's not just about the

cash it's about keeping your head

straight so when you hear about a

startup getting a bunch of money

remember it's not all going straight

into the founders pocket they're

probably still figuring out how to make

it all work just like the rest of us if

you enjoyed this video please don't

hesitate to subscribe to my new channel

I'm doing my best to post a video Once

once a week also a special thank you to

all the founders who reped to my

research questions and made this video

possible take care and see you

bye