This assumes how much of the founders' shares they sell and the size of the raise. The $400k figure is just arbitrary here. I imagine when companies are raising Series B or later, founders are walking away with millions.
$1-$2M after 6 years of working at $100k isn’t really much either in the Bay. (Which is the only place you’d get that.)
Even that averages to a senior Eng salary for the very very few founders who get there.
This has to be tempered by other realities
- no social life
- working 80 hours a week easily
- risking personal finances
- health problems
- good chance of divorce
/ no deep relationships
That may be true, but it is also true of early employees who stick it out for similar amounts of time and get nothing. $1-2 million may be the total amount they would get after a billion dollar exit.
