ðŦ How to allocate my startup's funding round while ensuring I get paid as a founder?
Calculate your startup's pre-seed funding target by modeling expenses, runway, and founder salary. Plan your initial capital raise effectively.
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A typical pre-seed round provides 12 to 18 months of runway. This gives you enough time to hit key milestones for your next fundraise without excessive dilution. Your target raise should be directly tied to a well defined budget and set of objectives for this period.
Salaries are the largest expense for most early stage startups. While your compensation is a personal decision, investors expect founders to take a reasonable salary that covers living expenses without being a distraction. Be prepared to justify your team's compensation in your financial model. See the Pilot.com 2025 Founder Salary Report to see stats on founder salary.
Operational costs cover the essential tools and services your business needs to run day to day. This includes everything from cloud hosting and software licenses to your marketing and advertising budget. Plan these costs carefully to avoid surprises.
These are significant one time costs that are critical for growth but do not occur every month. This can include expenses like key recruiting fees, large hardware purchases, or initial contract incentives for strategic partners.
For further related reading, check out:
ð Results
Average monthly burn
Total runway spend
Runway (months)
21
Buffer
Last updated by mahmoud (v25.10.0)
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Disclaimer: This content and any calculations provided are for informational purposes only. The views, calculations, and methodologies expressed are those of the author and do not necessarily reflect those of this platform. Not financial advice. Users are solely responsible for any decisions made based on this information.
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