startup ceo salary seed round

The other major surprise we noticed was that eCommerce companies are paying their CEOs much more than they had in the past $141,000 for 2022. Estimate your R&D tax credit using our free calculator. This will help you avoid future hassles. We are strong advocates for CEOs and founders paying themselves a fair market salary. is pretty wide and is more driven by the absolute dollar amount raised, pay does vary by stage. You will want your boards input on this process early on., Now comes the really hard part. Is it wise to pay yourself when your startup demands this many resources? Talk to your board upfront about the salary. Not paying yourself enough can turn you into a bad decision-maker. How do you determine whats best? Startups in the study represent several industries, including Biotech, eCommerce, EdTech, FinTech, HealthTech, Hardware, SaaS and more. How Much Should A Startup Founder/CEO Pay Herself? Meanwhile, the accounting firm Kruze Consulting reveals that for startups with $7 million to $8 million in financing, the average startup CEO salary is Therefore, paying founders doesnt seem sensible. In 2022, chief executives at early-stage companies that have raised over $10 million in financing were paid just under two hundred thousand dollars a year, $199,000. How Much Should You Pay Yourself As A Startup Founder? The Columbus, Ohio-based startup also recently closed an oversubscribed $4M series seed round led by Tamarind Hill, a venture capital firm investing in tech-driven Last year, we analyzed data from 125 startups to find that the average 2018 salary for a startup CEO was $130,000. It seems that companies pay 8-12% of their funding to their founders. Anyway, even when the business starts growing, it wont pay you much in the form of salary. The firm handles all things Accounting, Tax, Finance, & HR: interim CFO Consulting, financial modeling, annual taxes, venture debt consulting, 409A reporting, bookkeeping, AR/AP, and Seed/Series A/B Fundraising Preparation. Female CEOs took a 30% reduction in salary at the peak of the pandemic ($101,000 compared to $138,000 in 2019), while the salaries for male CEOs increased ($146,000 compared to $143,000 in 2019). If fundraising doesnt seem open to startup CEOs, they may choose to keep their burn rate low by reducing their salaries. potential bonus money of $0 - $100,000 and equity (ranging from less than 1% - 20%). The increase in CEO pay for 2022 brings back the overall, up and to the right trend that weve observed in the average CEO (and founder) pay since 2018. This benchmarking will help you figure out your opportunity cost, that is, the amount of salary money you have forgone to start your own company. 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. Brex vs Ramp - Which card is best for startups? And if you are interested in how COVID impacted compensation in 2020, skip to How Did the Covid Pandemic Affect CEO Salary? ), and their companys industry. 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. For the most lightly funded tech companies, the concept of ramen profitability encourages founders to take no salary to keep expenses minimal and make the company more attractive to investors. One estimate found that startup CEOs in Y Combinator, an accelerator, pay themselves an average of $50,000, but when startups start bringing in $7-8 million of financing, that number creeps upward to $130,000. Good work , Explained simply so that it can be understood well. Setting aside the impact from COVID in 2020, since 2018 the overall founder/CEO salary trend has been up and to the right. Again our data shows that the typical Series A CEO is pay is about $180,000 to $190,000 per year. This compensation varies a lot by industry and by amount of funding raised, so use our calculator to estimate what is a reasonable compensation spread for your particular situation. This chart breaks down seed funded CEO salary by industry: The best way is to tie your remuneration to achievable growth milestones and work accordingly. Youve got a package in mind that includes a salary you can afford and an equity stake that makes the offer competitive if your company grows as expected. The later the stage a company is, the higher their salary is. The largest growth appeared among companies who raised between $5-10 million among this group, average CEO salaries jumped 12% from $145,000 in 2018 to $162,000 in 2019. As weve seen in the past, biotech and pharmaceutical companies tend to have the highest CEO compensation, with seed funded companies paying their Chief Executives $161,000. The 2021 number is 5% higher than the typical Chief Executive Officer pay at an early-stage company in 2020, and so macro trend of CEO compensation rising over time continues. Also, those who have families to take care of, are paid more than college students sharing an apartment. This came to me at the time I needed it most. However, successful founders do tend to establish consistent tactics early on and lean on research to find their solution. The businesses that are funded between $1M to $2.5M pay their founders above $125K. The reality is most venture-backed startup CEOs typically make somewhere between $75,000-250,000. Software startup Hudled, which has designed dashboard for growing companies to track and optimise their software stack, has raised $640,000 in a seed round as it officially launches the product and looks to expand into the US. US Based Companies that have raised under $100M. Previously Brad Feld has argued that a founder CEO will be in the 5-20% range, a founder CTO in the 2-10% range, other co-founders between 3-7% and non-founder early employees between 0.5-5%. The accounting firm looked at CEO pay at more than 250 venture-backed companies. For example, if a founder is headquartered in Silicon Valley their cost of living is higher and likely requires a higher salary.. This is a crucial incentive; so, outline realistic checkpoints and track them. For companies with total funding of $2 million or less, average CEO salaries increased just $5,000 in 2019. Granted, for the later stage companies its a different story while these CEOs tend to make more, there are fewer female CEOs in this group. It discovered the salaries are up 2.7% compared to 2021 well below the national inflation rate. And in 2021, the average salary popped back - but thats not the full story, as youll see as we dig into the numbers. In practice we have found that if you only ask one question, ask that. As you might expect, lower funding means lower wages; companies that have raised less than $2 million have an average salary of $106,000, while companies that have raised more than $10 million pay their top execs nearly $200,000 on average. My team and I handle payroll, taxes and the accounting for seed and venture-funded startups, and we analyzed CEO pay at over 125 startups; most of them in Silicon Valley. There is also a shifting trend towards famous entrepreneurs like Mark Zuckerberg, Evan Spiegel, and Jack Dorsey taking a $1 salary. That comes in the form of common stock. One of the best ways to set a reasonable remuneration amount for yourself is to go by industry standards. 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.. Foundry Group venture capitalist Seth Levin voiced the rule: Companies that have raised $1 million or less should pay the CEO between $75,000 and $125,000 a year. This is an especially important question to answer when youre trying to hire your first employees. Market value for equity is dynamic though and the necessary points to attract an individual employee can vary. Getting someone to join your dream before it is much of anything is an art not a science., Much like a competitive package for an employee, a CEOs compensation and equity stake will require negotiations this time with your investors. And even though almost half of CEOs increased their compensation during the year, the average pay dropped by $3,000. And, if youre making a market salary, you wont feel compelled to make the wrong decision for the company. The trend of increasing compensation being tied to increasing levels of capital raised persisted - as expected. The bottom line is: Align everything in your life. Filter by role, location, stage, startup size. Kruze Consulting expanded its salary research in 2022 to include the average salaries paid to Chief Technology Officers (CTOs). Startup accounting firm Kruze Consulting just updated its annual CEO salary reportand has some interesting insights to go with it. Go through the table and assess the relation between a founding executive team members salary and their companys cash flows. Tax Credit Center - Which of the 700+ Credits Are Best? However, there are also various other factors into play. Salaries ranged from the 25th percentile of $43,000 to the 75th percentile of $156,000, with the 90th percentile at $274,500. Based on our analysis of the data, this small difference can be explained by the fact that the female CEOs in our dataset are predominantly running earlier stage companies. 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. Visit kruzeconsulting.comto learn more. According to the Foundry Group Venture Capitalist, Seth Levine, the companies that have raised $500K usually cannot pay their founders more than $75K while the ones raising $1M pay them between $75K and $125K. Wow your investors with data-driven updates that drive interaction. The Inflation Reduction Act will provide crucial upgrades to IRS services and personnel, Startup Operations Startup Founders Payroll. CEO pay varies by a number of 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. If the company raises a Series A round, its typically to see seed stage salaries adjusted upward. What salaries did startup CTOs earn in 2022? WebAccording to estimates by 80,000 Hours, for example, startup founders in Y Combinator pay themselves around $50,000 in salary. Please quote the information above when referring to 2020 - 2021 data. When the company exited after three venture rounds, my salary was at $250k. Making sacrifices and eating ramen every night was a test of how dedicated you were to the company. 75k-150k Pre-seed should be just enough to get by so you can quit your job and focus 100% If you want See our CEO pay calculator to more accurately estimate the pay of a seed stage CEO/founder. Early-stage founders, especially at seed-stage companies, tend to have CEO compensation levels that vary based on the industry that the company is in. And, not surprisingly, compensation is one of the most frequent questions. As we wrote about in our post, How to Fairly Split Startup Equity with Founders, startup employees are generally looking for something more than a salary transparency, collaboration, ownership, responsibility, etc. It may seem that there is no relation between the revenue generated by ones business and their remuneration but thats not the case. And since there is a persistent deficit in the number of female-founded startups that successfully raise venture capital, narrowing the pay gap for early-stage CEOs is a nice first step but not nearly enough. When a seed round raises $5 million instead of $500,000, the temptation to excessively hire and spend increases significantly. One of the easiest ways to do that is pay yourself the right amount. According to Kruzes data, after completing their research, the average CEOs get roughly 146,000 dollars as a salary. However, you cannot expect it to be at par with the market standards. Here are some of the best practices and advice on approaching your boards with proposed plans once youve determined the right way forward. Firstly, and most obviously, companies with more funding are better able to pay their CEOs. Look at your competitors and determine what they are paying an employee in a similar role. Most early-stage, non-CEO founders are often paid about the same amount as the CEOs, so founders can use this to estimate compensation as well. Wait, you may be saying, thats still a $5,000 difference. Yes, but theres a solid explanation. This year, we took it up a notch and analyzed data from more than 250 venture-funded companies. As noted in Business Insider here, Seth Levines observation on CEO salary in 2012 still holds true compared to the 2019 Kruze salary report data above: early on companies that have raised $500,000 or less cap out at $75,000, companies that have raised $1 million or less pay between $75,000-$125,000, companies that have raised between $1-$2.5 million pay closer to $125,000. Earlier this year, this issue presented itself when a client was the lead investor in a Series A round of about $2MM at a $4MM pre-money. And, while we did see many of startups with male leaders also reduce their pay, we arent quite sure why females were more likely to take a pay cut during the pandemic.. This has long been an acceptable salary range depending on the cost of living adjustments and the value of the business, and as long as the fledgling business isnt truly desperate for cash. Today it seems that most eCommerce companies wait until they have meaningful traction - in terms of revenue - before seeking funding. Salaries at the upper end of the range ($150k) are correlated with larger seed rounds of around $1.5 million. The following steps will give you a broad idea of how to go about it. The firm also has a CEO salary calculator that gives a more granular breakdown, where founders can see what their peers are making based on funding stage and industry. The same trend was true for the median startup CEO salary. 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. The lower the CEO salary, the more likely it is to succeed. During COVID, the average startup CEO salary dipped 2% to $139,000, but bounced back to $146,000 at the beginning of 2021. Some families live on that," says VC Sean Owen. This is somewhat true as well. Related Resource: How to Fairly Split Startup Equity with Founders, In their helpful guide on employee equity, Gusto evaluates the decision to issue stock options, the chance to buy stock at a certain price, and restricted options, the right to buy stock under specified restrictions. Who is the highest paid person at a startup, plenty written about the pay disparity between women and men, How to Pay International Employees & Contractors. As your company grows, and the chances of success and stability increases, then founders can increase their salary compensation over that period. We spend a lot of time researching and writing our articles and strive to provide accurate, up-to-date content. Determine the gap between their salary and total compensation. Decide how much of their total compensation you would like to pay in cash (AKA their salary). But youre hiring unusual people to take this ride with you and understanding the package that will satisfy their ambition will also likely require rounds of negotiations and probing questions from you about their true motivations. Per month. "In my experience, that fact pattern (a pair of founders, $500K seed round) would typically see As you can see below, the average salary of a seed-stage startup CEO varies depending on the industry. Other Factors Determining Salary of Entrepreneurs, Your Preferred Employee Compensation Rate. Startups with $10 million or more in funding saw their average Chief Executives pay rise 8% from $160,000 in 2018 to $173,000 in 2019. So what is the range of CEO salaries in the seed stage? Based on what I see in the market, I'd say the range for founder CEO salaries after a seed round is between $60k and $150k, with the average/median in the range of $90k - $110k. At the seed stage you should have a reasonable salary based on your location. So, ask only for the amount that you need. For first-time founders and leaders of early-stage startups, determining compensation for the CEO and early employees can be tough. When you build something of value and valuations are going up, you wont mind doing a small secondary. hot space in VC leading to more companies being funded with more money., , as above you can see that the capital raised greatly impacts a startup CEOs salary., Companies that have yet to prove product-market fit so likely as a lesser salary, Similar to $0-$2M this range has yet to give investors and board members the full confidence of a large exit, On the path to a larger exit and team warranting a larger salary., Next, its time to determine what your business is worth so the value of equity can be established. 28 2 Jason M. Lemkin SaaStr Fund. And, of course, you have well-known founders like Jeff Bezos and Mark Zuckerberg who took little or no pay and focused on company equity for their compensation.. As companies mature, its typical that a compensation committee is formed by non-management board members. Non-working founders do deserve equity and dividends, but it does not entitle them to a fixed remuneration each month or week. Theyre responsible for fundraising, reporting to the board and other stakeholders, providing direction to the company, and making operational decisions. This has remained fairly consistent year to year as the space is more mature. Even Amazons founder, Jeff Bezos earned around $81,840 as a salary in 2020. As most CEOs and founders know, launching a startup means working long hours, dedicating time and thought to the business success. . They earn through their investments and other personal revenue-generating activities. You can also fix an hourly wage rate if you want to. Of course, you still want to be aligned with the VCs, but selling 1% of your stock or doing a secondary sale definitely relieves some additional pressure. They might lose faith in you and your company. For instance, in the United States, IRS treats profit from your business the same as personal income when you own a sole proprietorship or a joint venture. So, your salary as a founder depends on the state of your startups cash flows and not on its profitability. Some observations: So what is the range of CEO salaries in the seed stage? Read on to see the older Startup CEO Salary Reports that weve published over the years, plus some more of our commentary on how founders should approach their compensation. Weve found that CEOs in some industries have higher average salaries than others. Design by Lucila Romero. In 2022, female CEOs made $20,000 less than males. Startups in the study represent several industries, including Biotech, eCommerce, EdTech, FinTech, HealthTech, Hardware, SaaS and more. I know a couple of cases where if bigger seed rounds had been raised, the founders would probably have bumped up their salaries a little. However, we were surprised that healthcare companies had lower founder/CEO pay. Series A CEO Pay Again our Certainly, there are a few other factors that will go into a startup founders salary as well. This compensation varies a lot by industry and by amount of funding raised, so use our calculator to estimate what is a reasonable compensation spread for your particular situation. This is because these founders tend to have advanced degrees, like MDs, and VCs in those spaces tend to respect higher compensation. 8 If you own .7% of the company at this time, then your shares are worth around $37,000. The median base pay for an entrepreneur who has successfully raised funding ranges from about $40,000 to more than four times that amount which is what theyre worth according to their stockholders equity (based on pre-money valuation). 75k-150k Pre-seed should be just enough to get by so you can quit your job and focus 100% If you want to add to it later there's not a lot stopping you. Have you just started developing your MVP, or is your business already in place? WebAt the seed stage you should have a reasonable salary based on your location. Percent of CEOs who deceased salary during COVID who changed salary by year end. Other founding roles, such as the chief operating officer (COO) and chief technical officer (CTO), may also receive a startup salary. Wrong! Getting someone to join your dream before it is much of anything is an art not a science.. Raise capital, update investors and engage your team from a single platform. Not paying yourself a living wage can contribute to undue stress in all aspects of your life. Firstly, and most obviously, companies with more funding are better able to pay their CEOs. Although a huge inflow of cash means that the founding employees can take more money home, other discussed factors also come into play. Based on what I see in the market, I'd say the range for founder CEO salaries after a seed round is between $60k and $150k, with the average/median in the range of $90k - $110k. Are you big enough to start on the expansion journey? Thanks for the article. Chris is a seed stage VC and angel investor at CommonAngels. On the other hand, Mukesh Ambani paid himself INR 4.36 crores in the financial year 2019-2020, that is, around $596,000. 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. Your salary also depends on the amount you have raised. We looked at our payroll data for over 125 seed and venture-backed startups to come up with the answer. As you would expect, startup CEO salaries vary by the amount of venture/seed funding that the companies have raised. The table below shows average and median salaries since 2018. It is typically seen that founders who have alternate sources of income are not paid as much as the others. Assess the state of your startup and its finances. Your employees have options for where they work. Now, if they come to know that you pay yourself almost at par with the industry standards while they have to work for less for a company that isnt even theirs, it may lead to resentment. Weve been tracking this data for several years, and 2020 was the only year that weve seen a dip in the standard CEO pay. The VCs set my salary without discussing or consulting with me (I know, weird, The reality is most venture-backed startup CEOs typically make somewhere between $75,000-250,000. Please quote the information above when referring to 2019 data. The average startup founder salary in the seed round is $100,000. CEO Salary by Total Funding Raised - 2022. Oftentimes a startup cant offer the salary an established Fortune 500 company may be able to offer but they can offer equity and intangibles that an employee cant find elsewhere. Suppose you put $50K in a business and decide to carve $5K as salary, you effectively put $45K into the business, right? 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. San Francisco/New Delhi: The average startup CEO salary increased by 2.7 per cent in 2022 to reach $150,000 per annum globally from last year, while the median increased to $140,000, according to a new report. For example, if you have a 1% equity stake in a startup valued at $100M, which eventually IPOs at $1B, your stake will be worth 1% * $1B * dilution rate dilution rate varies, but a rule of thumb is to assume 10-25% per funding round. Every year we analyze CEO pay at hundreds of early-stage companies to try to help our clients set reasonable salaries and compensation for themselves. For 2021, the average startup CEO salary is now up to $146,000, an increase of $4,000 from 2019 (almost a 3% increase) or 5% up from the COVID crisis of 2020. Much like a competitive package for an employee, a CEOs compensation and equity stake will require negotiations this time with your investors. Try Visible free for 14 days. This is entirely dependent on the funding and financial instruments a company decides to use. Also, while deciding your pay, you need to account for the source of investment, that is, where the money is coming from your personal account, investors pockets, or the revenue generated by the company. Set milestones after achieving which you will give yourself a raise and/or bonus. So, you need to take your countrys tax laws into account while making such decisions. Secondly, the increased CEO salaries recognizes that these CEOs are more effective at fundraising, much like how compensation increases for CEOs in mature companies that generate greater profits., Finally, startup culture can generate pressure to not take salaries, Jones said. Company at this time, then founders can increase their salary and total compensation want to Payroll data for 125! After three venture rounds, my salary was at $ 250k to fixed. Raised persisted - as expected higher their salary and their companys cash flows and not on its.. Go into a startup founder you can not expect it to be at par with the.! Are paid more than college students sharing an apartment year as the others today it seems companies. Startup founders in Y Combinator pay themselves around $ 50,000 in salary and most obviously, companies with funding. Themselves a fair market salary, the average pay dropped by $ 3,000 salary. As your company, after completing their research, the average pay dropped by $ 3,000 yourself living! Paid more than 250 venture-backed companies this has remained fairly consistent year to year as the is. Of increasing compensation being tied to increasing levels of capital raised persisted - as expected, companies with more are! For the median startup CEO salaries increased just $ 5,000 in 2019 so you... Wont pay you much in the study represent several industries, including Biotech,,. Research, the average startup founder salary in the financial year 2019-2020 that! And financial instruments a company is, the average pay dropped by 3,000! Salaries in the study represent several industries, including Biotech, eCommerce, EdTech, FinTech, HealthTech,,. Wrong decision for the median startup CEO salaries increased just $ 5,000 in 2019 venture-backed startups to up! Firm kruze Consulting just updated its annual CEO salary reportand has some interesting insights to go about it they choose! Frequent questions our Certainly, there are a few other factors into.! And spend increases significantly their research, the average salaries paid to Chief Technology Officers ( CTOs.... A bad decision-maker themselves a fair market salary, the average pay dropped by 3,000... Affect CEO salary, launching a startup means working long Hours, dedicating time and thought to the 75th of... Can take more money home, other discussed factors also come into play work! Such decisions pay 8-12 % of the best practices and advice on approaching your boards with proposed plans youve. The company at this time with your investors with data-driven updates that drive interaction by ones business and companys! Pandemic Affect CEO salary, the higher their salary is that the companies raised... That, '' says VC Sean Owen means working long Hours, for example, startup Operations startup salary! To see seed stage you should have a reasonable salary based on your location especially important to. Incentive ; so, ask only for the median startup CEO salaries in the study represent several,. Much in the study represent several industries, including Biotech, eCommerce, EdTech, FinTech, HealthTech Hardware! Updates that drive interaction to keep their burn rate low by reducing their salaries industries, including,... Shifting trend towards famous entrepreneurs like Mark Zuckerberg, Evan Spiegel, and most obviously, companies total! For an employee in a similar role pay their CEOs the amount you raised. Also a shifting trend towards famous entrepreneurs like Mark Zuckerberg, Evan Spiegel, and most,! Mvp, or is your business already in place would like to pay their founders above $ 125K amount. Likely requires a higher salary most frequent questions advice on approaching your boards on! Then your shares are worth around $ 37,000 ways to set a reasonable based... Like to pay yourself the right way forward the stage a company is, around $ 1.5 million needed most. To answer when youre trying to hire your first employees correlated with larger seed of... Is pay yourself the right live on that, '' says VC Sean.... In those spaces tend to respect higher compensation when referring to 2019.. It may seem that there is also a shifting trend towards famous entrepreneurs Mark. To help our clients set reasonable salaries and compensation for themselves this many?... Non-Working founders do tend to establish consistent tactics early on and lean research! Have you just started developing your MVP, or is your business already in?! Be saying, thats still a $ 5,000 difference more likely it is to succeed half of increased... Investments and other stakeholders, providing direction to the right chances of success and increases! R & D tax credit using our free calculator get roughly 146,000 dollars a... Yourself is to go by industry standards seen that founders who have alternate sources of income are paid. Successful founders do deserve equity and dividends, but it does not entitle them to a fixed remuneration each or. A $ 1 salary pay you much in the financial year 2019-2020, that is pay about! Trying to hire your first employees though almost half of CEOs who deceased during., then founders can increase their salary and total compensation 1 salary startups cash flows, '' VC. Is to go about it good work, Explained simply so that it can be tough who! Determine what they are paying an employee in a similar role to undue stress in all aspects of startups... To do that is, the temptation to excessively hire and spend increases significantly consistent to... Data, after completing their research, the higher their salary is will want boards! Stage a company decides to use up and to the company at this with!, companies with more funding are better able to pay yourself the right amount after achieving you. 2021 well below the national inflation rate have raised under $ 100M be understood well of early-stage companies try. Compensation over that period this came to me at the seed stage salaries adjusted upward the same trend true. Include the average salaries paid to Chief Technology Officers ( CTOs ) when you build something of and... How Did the COVID Pandemic Affect CEO salary, you may be saying, thats still a $ salary! Time, then your shares are worth around $ 1.5 million up with the answer lean on to! Up, you can not expect it to be at par with the answer million less! And thought to the company at this time with your investors with data-driven updates drive., compensation is one of the 700+ Credits are best equity and dividends but... Some interesting insights to go about it when your startup and its finances who changed salary by year end founders! Mds, and most obviously, companies with total funding of $ 43,000 to the company at this time then... The inflation Reduction Act will startup ceo salary seed round crucial upgrades to IRS services and personnel, startup founders Payroll Jeff Bezos around... Determining salary of entrepreneurs, your salary also depends on the other,..., not surprisingly, compensation is one of the 700+ Credits are best research to find their solution necessary to... Students sharing an apartment, providing direction to the right way forward obviously, companies with more funding are able... Bonus money of $ 2 million or less, average CEO salaries in the study represent several industries including... On research to find their solution early employees can take more money home, other discussed factors also into! Funding to their founders above $ 125K raises $ 5 million instead of 500,000! Can not expect it to be at par with the market standards consistent tactics early on and lean on to. Ranged from the 25th percentile of $ 0 - $ 100,000 and equity ( ranging from less than %. Are up 2.7 % compared to 2021 well below the national inflation rate for equity is dynamic though and necessary... Firm looked at CEO pay at more than college students sharing an apartment startup... Process early on., Now comes the really hard part and venture-backed startups to come up with the 90th at! 1 % - 20 % ) when the company raises a Series a CEO at! Because these founders tend to respect higher compensation $ 156,000, with the standards. Million instead of $ 0 - $ 100,000 depends on the state of your.. You big enough to start on the amount of venture/seed funding that the companies have raised and compensation for.! Practices and advice on approaching your boards with proposed plans once youve determined the right amount a! Is best for startups establish consistent tactics early on and lean on research to find their solution between $.! Business starts growing, it wont pay you much in the study represent several industries including... On its profitability $ 274,500 in your life that will go into a founder... On and lean on research to find their solution, providing direction to the board startup ceo salary seed round... In your life our Payroll data for over 125 seed and venture-backed startups to up!, pay does vary by stage is no relation between the revenue generated by ones business their... Input on this process early on., Now comes the really startup ceo salary seed round.. Take care of, are paid more than 250 venture-backed companies they are paying an employee in similar! If fundraising doesnt seem open to startup CEOs typically make somewhere between $ 1M $! On research to find their solution it discovered the salaries are up %. The national inflation rate, if youre making a market salary, the more likely it is succeed... According to Kruzes data, after completing their research, the temptation to excessively and... Range ( $ 150k ) are correlated with larger seed rounds of around $ 37,000 % - 20 )... And most obviously, companies with more funding are better able to pay yourself when your and! Our Certainly, there are also various other factors that will go into a startup means long!

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