🛫 How to allocate my startup's funding round while ensuring I get paid as a founder?

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.

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:

• What are average startup founder salaries in 2025?
• How Should Founders Pay Themselves?
• How Should You Allocate Your Pre-seed Funding?