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title
Managing in the Tropical Zone
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Deepak Shenoy on what it takes to be in the Indian Technology sector.
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Managing in the Tropical Zone skip to main | skip to sidebar Managing in the Tropical Zone Deepak Shenoy on what it takes to be in the Indian Technology sector. Monday, October 01, 2007 VC and Founder Compensation are so totally different Sramana Mitra has an excellent post about how skewed compensation is at startups . (Emphasis mine) As for the compensations, General Partners at Venture Firms make anywhere between $1 Million to $3 Million a year without counting performance incentives. The carry is all upside. ... In contrast, the poor entrepreneur bootstraps a startup, takes enormous risks, and if (s)he raises venture money, the first thing a VC does is to restrict his/her salary to a minimum. ... Only one out of 50 startups succeed (or may be one out of 100, I don’t know the exact ratio), so the equity component of the compensation package rarely pays off after the liquidation preferences, etc. are settled. Meaning: 1) For the entrepreneur, the compensati...
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