A naukri.com initiative
Hackernoon
1w
309
Image Credit: Hackernoon
Founder Compensation Plummets 43% as Capital Efficiency Becomes Queen and King
- Founder compensation has decreased by 43% as per Pilot's 2025 Founder Salary Report, reflecting a shift towards capital efficiency in startups.
- Median founder salary dropped from $132,000 in 2024 to $75,000 in 2025, with more founders taking home less than $100,000.
- Only 5.4% of founders reported taking no salary, down from 9% last year, indicating some form of compensation despite salary reductions.
- The decline in founder salaries is linked to challenges in VC funding, leading to a rise in bootstrapping as a funding alternative.
- AI founders, despite experiencing salary reductions, saw a higher median compensation of $90,000, reflecting market demand for AI startups.
- Founders primarily consider what the startup can afford when determining compensation; benchmarking salaries against market rates led to 79% higher earnings on average.
- Factors influencing founder compensation include funding levels, company size, phase, and geography, with varying impacts on salaries.
- The key is to strike a balance between personal sustainability and financial prudence to ensure both founder well-being and company survival.
- Navigating the capital-efficient landscape requires strategic decisions to maintain motivation while preserving runway for company stability.
- This shift in founder compensation signals a broader trend towards financial discipline and sustainability in the startup ecosystem.
Read Full Article
18 Likes
For uninterrupted reading, download the app