Ask HN: How much do founders pay themselves?

This is something I've always wondered about... When you take a VC round, how do you (as a founder) get your salary determined? Is it purely up to the board and investors? Is it up to you? How does it compare -- is it the bare minimum to live on, so that everything can go into the company? Is it comparable to an executive you'd hire? Somewhere in between?

I'm very curious about the calculus. I imagine it varies quite a bit by the type of investment made (e.g. angel vs. VC vs. institutional), but that's just a guess.

Usually less than everyone else as long as they are able to do a little more than subsist. They are taking equity. When other people who are hired on board find out founders are paid less than everyone else, it usually quells any negative attitude towards management

I think it should generally be inline with what other funded startup founders pay themselves. I've been led to believe in the past this was between: $50-70k.

When I was in the VC world, the founder's salary vs. equity demands were usually used to gauge how invested they were into the company's vision and concept. If the founders spent a lot of time penciling in $200K+ salaries, elaborate bonus and commission packages, and exorbitant perks (a $5K/month 'car allowance' was my personal favorite) for themselves, then it was a definite red flag. If instead they were willing to take modest salaries but fought hard for equity, you knew that they truly believed in their idea and were fully invested in the concept.

Varies from founder to founder depending on their psychology and their personal situation. While the board approves it, you make the proposal.

There's a lot of benefit to being able to say 'this is a great opportunity, but we're being careful with our cash right now - I'm the lowest-paid person at the company' when recruiting. That said, you don't have to be a martyr and drain away your savings after you've raised. Your board may vary, but after a Series A you can likely justify a low six-figure salary.