“We all got a really, really low salary to optimize the company’s runway,” she said. At Syndio, she tried a different approach. Her leadership paid below the market, but “it wasn’t much lower than the choices we made when we co-founded SmartSheet,” she said. She added that it’s a good idea for founders and start-up executives to ask investors for the right salary. (Mr. Mandelbaum is one of her investors.) She said that moments of economic uncertainty can exacerbate inequality.
Lefcourt said he generally preferred to see the founders spend some of their money to pay them a comfortable salary. Amounts like $ 100,000, which are in the $ 80,000 to $ 180,000 range she considers most likely appropriate, will probably not “move the needle” to the company’s overall finances, she says. rice field. However, that quantity can move the needle to the founder’s quality of life.
Mariam Nusrat, founder of gaming company Breshna, said investors believe that “every dollar costs an opportunity.” At her meeting earlier this year, she moved to a hotel room every night to save money. She was recently funded by an investor, and she thought, “This $ 100 could be used for more Twitter ads and more.”
Looking back on the role of venture capitalist, Mandelbaum said: It’s true. “I think it’s also our responsibility to make sure that companies are raising money at the same level, regardless of who the founder is, so that people are actually paid. You can pay the amount you deserve. “
Some founders plunged in reputation as tech companies face layoffs (last month, celebrity shout-out app Cameo and career service company Ondeck reduced staff by at least 20%). Feels pressured to lower his wages.
“Eating ramen in a small apartment may feel normal again,” Lefcourt added immediately, “I don’t recommend it.”
