Can you pay yourself a salary if you raise angel funding (not VC)?


1

Most founders seem to pay themselves a basic salary when they raise a round from VCs. Does it apply to angel funding too? What would you say is a fair salary to pay yourself if you have raised money from angels?

Funding Angel

asked Feb 4 '14 at 20:07
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User30035
16 points

1 Answer


3

You should pay yourself the only the amount needed to survive -- and put everything into making the business a success. Don't raise money to create a cushy job for yourself. Raise money to grow your business and profit in the long run with the equity you have vested in it.

Do pay yourself a salary to cover your basic expenses -- otherwise you will spend more time thinking about how to pay your bills than growing the business. Create a list of all the essential expenses you have. Your salary should be just enough to cover them.

answered Feb 5 '14 at 16:56
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Nishank Khanna
4,253 points

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