June 6, 2007 by Peach Seedz
Startup Compensation
Brad and Jason over at Ask The VC posted some interesting compensation figures for startup company management. As they note in their post these figures are different in different parts of the country. If you ask me Series A VC backed companies here in Georgia are about 10% below the averages they quote. The equity seems pretty dead on.
If you are at the angel stage I would take these figures and give them a 25% – 50% haircut to give you an idea on what angels can stomach.
For the VCs and VC-funded managers out there – a question on key man insurance. Do investors take out KMI on company founders when they fund a company? If so, at what stage (I would imagine less so at angel stage then later on)? Finally, any rule of thumb as to how much insurance they might take out relative to the amount they invest?
Appreciate the input.