Trying to structure my comp package as first-time founder coming from $300k FAANG PM role. Investors want me fully ‘skin in the game’ with minimal cash compensation, but I’ve got Bay Area mortgage payments. How have others navigated this cliff? What’s realistic to push for in early-stage terms without killing runway?
theyll tell you ‘sacrifice now for upside later’ while charging management fees to your burn rate. counter with reverse vesting triggers - if vcs get liquidity preferences, you get salary bumps at funding milestones. otherwise youre just a glorified employee with extra steps and broken dreams
wait founders dont get paid??
how do u eat??
Three leverage points: 1) Negotiate a ‘co-founder COLA’ - salary escalators tied to revenue targets vs funding rounds 2) Ensure acceleration clauses for acquisition scenarios 3) Always keep 2% separate for advisor equity - use it to backfill personal cash needs through secondary sales.
2023 Founder Compensation Report shows 74% of first-time tech founders take <$100k salary. However, 68% negotiated anti-dilution protections for series A. Recommend benchmarking against stage-aligned Carta data rather than prior corporate comp.