Founder salaries 2023
“Am I underpaid?” A question we are regularly asked by founders. We have tried to answer this question by reviewing some credible reports.
Seedcamp - Annual salaries for Founders: Seed: £68k / Series A: £106k
Seedrs - "At a £2,000,000 valuation, Seed Legals found that the average founders’ salary was £25,000, rising to £52,000 and £80,000 at £4,000,000 and £6,000,000 respectively"
SeedLegals - £8m in funding = £100k salary
Slush with Creandum - European comparison
VC Creandum and startup conference Slush released data showing founder salaries across Europe, based on responses from 650 founders in 47 cities from pre-seed to Series B and including bootstrapped founders.
Median salaries across Europe for pre-seed companies are just under €50k, while founders are making over €100k by Series A and €140k by Series B. Founder CEOs are on an average salary of €149k, while non-founder CEOs are on €223k base.Venture Capital, Partner - Detailed look at salaries between London, Amsterdam, Barcelona, Berlin/Munich and Paris.https://lnkd.in/e8PZd3xx
Santa Monica Talent summary
As you can see this is a very grey topic, The numbers are broad. In our experience the biggest differential depends on first time founder v experienced founder, the first time founder does get far less, and is not comfortable asking for more.
Founders need to keep other factors in mind when benchmarking salaries. This includes, company size, company stage, company location, company sector, funding and cash flow.
Convincing the investors you need to cover mortgage or rent, and family expenses should hopefully lead to a fair salary.
The older model of not paying yourself enough to show the world your suffering feels a bit toxic and should be avoided especially in expensive London.
It's noticeable that investment platforms have the lowest salary numbers v other reports.
Conclusion, we feel post late seed, and definitely from Series A a London based founder should pay themselves £85k to £100K without feeling guilty.
