When to Get Started: Personal Runway
Today we’re talking more about why you’ll need personal runway before getting started on a startup.
1. Most companies take at least 1 year to raise a seed round over $1M. Before that, the company will not be able to afford to pay the founders a reasonable salary. In most cases, you will need to find the money for your personal needs.
2. Personal runway can cause lots of friction. If one founder has a different timeline from others and the topic is not openly discussed, there’s potential for a large and unwelcome surprise. Cofounders having to leave because of their personal runway happens a lot.
3. Needing a salary early is a bad look for investors. Investors want to feel like the startups they invest in are going to be successful with or without their capital. They don’t like feeling as if the company’s big plans are 100% dependent on investors coming along.
Best of luck out there.