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Startups in Survival Mode: Pilot’s 2025 Report Shows Founders Taking Major Pay Cuts
- Pilot's 2025 Founder Salary Report reveals a 43% drop in entrepreneur compensation, with the median founder salary now at $75,000.
- Founders are adjusting to the funding landscape by cutting their own pay based on what the startup can afford.
- The shift towards austerity is evident in a significant increase in bootstrapping and lower founder salaries, with a median of $60,000 for self-funded founders.
- Founder salaries tend to plateau after reaching 11-25 employees, indicating a crucial threshold for sustainable wages.
- Regional variations persist, with founders in San Francisco earning $103,000 compared to $65,000 in 'Other US' regions.
- B2B founders have higher compensation ($120,000 median) than B2C founders ($82,000), reflecting differing revenue streams.
- Despite declining compensation in most sectors, AI founders report higher salaries ($90,000 median) due to specialized talent demands.
- Younger founders earn more on average ($80,000 median) than middle-aged counterparts ($65,000 median), showcasing a generational shift in priorities.
- The report emphasizes the importance of balancing personal economics with company growth for sustainable entrepreneurship.
- Startup founders are faced with the challenge of finding a balance between personal financial health and company strength in the current economic climate.
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