The Low End of Normal.
Once a start-up raises > $3m or so USD$, there’s no need for the founders to work for Ramen Money anymore.
In fact, it’s bad for the company. Working for free in the early days is necessary, working for almost nothing makes sense when you are very capital poor.
But once you raise $3m, the very last thing I want for a start-up is for the founders to be worried about paying the rent. That’s distracting and dilutive. I want you focused on nothing else but scaling.
If I have to invest another $100k or $200k or whatever into the round, I’ll happily do it so the founders can get paid at least Low Market. It de-risks the investment dramatically.
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