Is it acceptable for founders to pay themselves with funding they receive?

Absolutely – most investors will expect this. However, salaries – especially at the beginning – should be modest. Just enough so you aren’t thinking about how to pay rent and eat.

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What is the ideal way of approaching your so-called 'pay' when you're founding a start-up and looking for investors? This is because I'm getting conflicting views on these...

Answered by Mark MacLeod – Partner, Real Ventures

There is no one way. Founders that pay themselves a high salary is definitely a red flag. We just funded a company where the founders did not pay themselves until we funded... (more)

Lets say you're 3 guys with a cool idea, the talent to build it, but no savings. You build something in your spare time. You raise $500k. Is it reasonable for founders t...

Answered by Micah Baldwin – Founder, Graphic.ly

sure. just remember expenses = equity. runway extension is not guaranteed. and at $90k for 3 founders means that 50% of your funding is going in your pocket. Its your com... (more)

Even before writing the business plan, should the founders decide on how much of the company is theirs as a percentage of ownership? When do you discuss with the other foun...

Answered by Scott Rutherford – Founder, UserVoice

Ok, so, yes. You should have some idea on the roles and % before getting into anything. Once people start inputing their thoughts the sense of ownership changes. I would su... (more)

If someone refers me via email to an investor (with me cc'd) is it okay for me to follow up asking for an inperson meeting?

Answered by Corey Kossack – Partner, Game Change Ventures Posted in Money

Here's the best way to respond. Follow up with a brief blurb (1-2 paragraphs) about what you are doing (if the person who referred you hasn't sent this already). Then, say ... (more)

Where do I find a talented RoR developer for an extremely exciting new project.

Answered by Scott Rutherford – Founder, UserVoice Posted in Technology

The first thing to do is decide the boundaries for the person. Is it acceptable for them to be remote, in a completely different timezone. Do you want a co-founder or a sub... (more)

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