Taking the founder plunge but terrified about cashflow. Those who made this jump - what formula did you use to determine minimum equity percentage vs. salary needs? How do you balance personal runway with enough skin in the game for investors?
Standard formula: 1) Calculate 24-month personal burn rate 2) Ensure equity stake covers 3-5x that value at next funding valuation 3) Keep salary below 30% of raised capital. Key is negotiating vesting cliffs that align with milestones rather than fixed salaries.
survivable? lol you don’t. real founders starve. take whatever scraps keep lights on and pray the board doesn’t dilute you to oblivion. pro tip: marry someone with health insurance
i just took 50% pay cut but got 15% equity!! works if you believe in the vision
maybe try side hustles for cash?