Dear SaaStr: When My Startup Raises $10m, Would It Be Appropriate to Take a $170k Salary (no co founders)?
Yes, not a problem.
You should take a “market correct” salary as soon as it’s economically immaterial to the company.
I don’t write $10m checks. I write, typically, $1m-$5m checks, the stage before that. But. As soon as I do write a check > $1m — I want to at least make sure the founders get paid. Keeping them “healthy” is usually #1 highest ROI investment at this point.
If paid at that time doesn’t mean a full-market correct salary … then at least … let’s do it in the next round.
I don’t want you stressing about rent or any cr*p like that any longer than you have to.
But if you want to take any non-essential $$$ out when it still matters — then there’s also a problem. You aren’t valuing your stock enough.
I’ve worked for $0. Thrice. I get it. You do it when you have to. But it’s dumb when you don’t have to. It also … gives you an excuse.
The stressor is when the size of your comp, whatever it is, or later, any secondary liquidity, impacts the runway or health of the company. The best founders never allow that to happen. The rest? Well …
A related answer here:
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