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New research has poured cold water on the myth of high-flying startup entrepreneurs, revealing that 73% of startup founders earn less than $50,000 (roughly £32,000) a year.
Of the 11,160 companies surveyed around 8,000 founders said their salary fell in the $0 – 50,000 bracket, whereas only 309 said that they earned over $175,000 (roughly £106,000).
Australia boasted the highest paid founders, where the average salary was over $70,000, whereas Indian founders were the worst paid, with an average salary of around $30,000. Meanwhile, founders in London enjoyed an average salary of $45,611 (roughly £27,750).
Speaking at a startup convention back in 2008 Peter Thiel, co-founder of PayPal, said that the less a founder is paid, the more likely the company is to succeed. He went on to say:
“The CEO’s salary sets a cap for everyone else. If it is set at a high level, you end up burning a whole lot more money. It aligns [their] interest with the equity holders. But [beyond that], it goes to whether the mission of the company is to build something new or just collect paychecks.”
The data ties in closely with a report published in 2011 which found that startups have less chance of success if they scale prematurely, often resulting from over-investment in personnel.
You've pitched, landed the job, delivered your work...and now it's time to get your money. But how do you do that? Luckily, help is at hand! We give you the lowdown on what your invoice should include as well as links to handy free templates and software.
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