I see this is a question that is posted quite often on Quora but we do not have data for Nigerian startups.
If a Startup raises seed capital how much should the founders and/or executive team pay themselves?
Would love this info as the data we collected so far is primarily on established technology companies.
It depends on the amount raised.
Here:
That’s what a pre-seed investor thinks should be a founding teams monthly pay. You can read the whole thread here:
Hmm.
There is no one-size-fits-all answer for this question. None!
There is no norm to it. It is highly dependent on so many factors.
I can take the $15k investment from micro-traction and decide not to take salaries and pay other team members as the founding CEO, maybe because my personal savings can sustain my living and we really need more money than was raised. So instead of taking salaries, you might decide to invest it back into the startup. That’s sacrifice and risk too. But it happens a lot.
Another can take the same investment, and decide to take 50k for some reasons too. Another might take market rate, maybe because they really raised a lot of funds. None of these categories is the norm, but it happens.
My point is; there is no template for this. None!
In addition to all said, taking a market rate salary might not end well for your startup.
Good luck.
This is more so for startups who have raised between $500,000 to $1M
Sure.
Oxdrift.