The company Creandum published a report on the salaries of startup founders. The study was conducted among 650 entrepreneurs from 47 European countries, and the aim was to provide data on the average earnings of founders at various stages of their companies' development.
Free access to this article is provided to you by MU Group.
In the Creandum report, an attempt was made to understand whether there is a relationship between the amount of startup funding and the level of their founders' salaries. For this purpose, over 650 entrepreneurs from 47 European countries were surveyed during last year's SLUSH conference.
From their responses, it appears that in companies that have received funding up to one million euros, the average annual salary of a founder is about 50,000 euros. On the other hand, in the case of companies that have raised over 50 million euros, this amount increases to about 155,000 euros per year. However, the report notes that there is a funding threshold beyond which salaries stop growing significantly. It was set at 11 million euros, where the average salary reaches the aforementioned level of 155,000 euros and remains stable - often until the funding exceeds the threshold of 50 million euros.
At the same time, the location of the startup in the early stages of its development has little impact on the founders' salaries. This only changes at the first round of funding. The United Kingdom leads in this area, where founders can expect higher earnings compared to business founders from Baltic and Central and Eastern European countries, where salaries are the lowest. However, the report points to positive growth trends in these regions.
"The founder's salary sets the standard for the entire organization," comments Carl Fritjofsson, managing partner at Creandum.
– A low salary indicates that you are risking everything, and starving on the way to the goal is not a sustainable approach. The founder should earn enough not to worry about money, but not so much as to risk something he is trying to build - he adds.
Creandum's analysis also showed that in the early stages of development, the industry does not significantly affect the level of salary. The situation changes at the first round of funding, when founders of fintech sector companies begin to lead, achieving an average salary of 160,000 euros. This phenomenon is explained by the intense level of investment in the fintech industry, which in the second quarter of 2022 received a significant sum of investments amounting to 21.5 billion dollars.
Jakub Rusak
The report also points to a wage gap between female and male startup founders. Men can expect salaries higher by an average of 15 thousand euros. This difference only decreases at a higher level of funding.
Creandum also developed a salary calculator, allowing founders to estimate the average salary depending on the specifics of their activity. This tool is designed to help determine the appropriate level of founders' remuneration.
Ewa Pawlik
Jakub Rusak
How to start working in the Polish gamedev? Is it really a land flowing with milk and honey and what advice do people associated with the industry for years have for you? We look at the work in the Polish segment of the game market and suggest how to make a name for yourself in it.
Motivating employees is not only an art, but also a big challenge, which carries key importance for the success of any organization. How to do it well?
As the only company in the world, it is able to produce processors in the most advanced 3 nm technology. In addition, it owns the most expensive factory ever built, and its clients are Apple, NVIDIA and Intel. How did it happen that Taiwanese TSMC became one of the most important companies in the world?
Starting a new business involves considerable risk. However, it can be minimized by choosing the right way to finance your venture. Here are the six most popular methods of raising funds for development.
English