Need help. Startup. Several founders. Got investments n$. Worked for free after getting investments 6 months. Reached and even more, KPIs, Investors are very happy. Now new round with new investors come. Money to be invested 6*n$. Which salary should we get compared to market one? From one side we are founders and need to spend as less as possible. From Other side if we do not get market rate we actually spend our money not to dilute current investors. Should not they then add some money without getting extra percentage or we get full market salary?
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Regarding your salary, get as less as possible, usually, 60-75% of the market average salary should be enough. If you can get more money from the investors - use them for developing your business and not for increasing your salaries. I am not sure that I understood the 2nd part of your question, but if you were asking how to fight the dillution of your share during the 2nd round of the investment, below is my suggestion. In order to reduce the dilution during the 2nd round of the investment you can (over)evaluate your commitment in order to increase company value, e.g: assuming that your salary is X(per month) and your companion's salary is Y(per month); you are both commited for 2 years.You add the (X+Y)*24 to the company's value. X and Y are virtual assets and their estimation is up to you (of course it needs to be backed up by some real numbers - market average salary of the equivalent positions based on your experience). You "expense" this "virtual asset" called founder's commitment on the ivestors by increasing company's value. By increasing company's value you decrease the investor's share which is "real asset" (money). Good luck! |
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The question was: we had investors("A"). We've spent their money and reached all KPIs(they are very happy). Now new investors come("B"). If we do not get salary after second investor, that's equal to paying our own money. So it appears that we pay our money for sake of company, but investor "A" does not work for the company and does not add any money. So we(founders) spent our money for the sake of ourselves and investors "A". Should not then investor "A" add money for no shares or we get market salary? |
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