Others sign up for the hustle, and the hope that a big exit down the line — and the payout that comes with that — makes up for the lack of a decent salary in the early days. But as we wrote last week,exits are few and far between right now. So, does that mean founders are paying themselves more than they used to? Amy Lewin digs into that below.
Be in with the chance to shine a spotlight on your business by applying to the first of our brand-new regional Leaderboards launching on March 27, which will rank the fastest-growing startups in the UK and Ireland. The deadline for submissions is March 8.
When I was in my mid-twenties, I had several friends from uni who’d founded startups. They were working their asses off — and they were paying themselves even less than I was earning as an editorial assistant.
Now that their companies have raised several rounds of funding, they’re on much more comfortable salaries — although the big payout will only come if they’re able to exit their companies for millions.
Despite that, founders haven’t given themselves much of a pay rise, according to a new report on founder compensation from European VC Creandum, out today.
No need for violins — founders are still paying themselves, on average,almost €100k in the UK, and over €75k in France. But those salaries haven’t changed much since 2022, when VCs began preaching profitability at all costs and layoffs began across the tech sector.
As a result, founders have had it rough; they’ve had to cut teams, expansion plans and perks, prepare and tear up budgets, and answer Lord knows how many emails from their investors. We’re hearing that more are now quitting than ever, and many are looking at the current value of their equity and wondering if it was all worth it.
I doubt a pay rise would be enough to make a difference for them; if you’re knackered enough to be contemplating leaving your company, I doubt a few hundred extra in the bank each month would convince you to stay.
What do you think? Do VCs need to bump up founder salaries to keep them in the game? Should founders pay themselves better? Or are we about to see a big wave of founder churn?Let me know.
🇫🇷 France’s superstar AI startup Mistral has recruited a new public affairs director. Audrey Herblin-Stoop, who in the past was head of public affairs for France at Twitter (before it became X), will be tasked with representing the interests of the company — and, in particular, defending the benefits of open-source technologies — with policymakers, as the regulation of AI becomes an increasingly hot topic in the EU.
Until this point, for all things lobbying, policymaking and the AI Act, Mistral had been counting on one of its cofounders and former French digital minister Cédric O — who previously told Sifted that after spending five years in government, it wasn’t really his intention to remain at the heart of heated political debates.
🧴 Biotech treating skin diseases launches with $100m in seed funding. Boston and Geneva-based Alys Pharma, which was founded by European life science investment fund Medicxi, is using the human immune system to try to treat the symptoms of a range of skin diseases, including psoriasis and eczema.
The $100m in seed funding came from Medicxi — and the company itself is an aggregate of six different Medicxi companies, which all had related assets or platforms in their pipeline.
Three operating subsidiaries will be set up in the US, and three in the UK — each working on a different type of disease and treatments.
We’ve got you covered with our AI cheat sheet — a “how to” for implementing the technology in your business, from fostering a culture where these tools are encouraged to hosting internal hackathons.
☀️ After surviving two bumpy years, Spanish solar energy company Holaluz is eyeing €19m in EBITDA this year — up from €3m in 2023 — its CEO and cofounder Carlota Pi tells Sifted in an interview published today.
Holaluz has historically made money in two ways: providing solar panel installation and maintenance for households and small businesses, and by distributing and selling solar and gas energy from the grid. In 2024, the company is planning to expand its sales of electric batteries.
Spain lags behind most of Europe in sales of electric cars and distributed solar installations, and Pi believes it could become a very profitable market with the right incentives — subsidies for the purchase of electric cars and tougher EU deadlines for rolling out cleantech.
The stock market, however, doesn’t share that optimism; Holaluz’s shares trade at just below €3, down from €14 in 2021. The Barcelona-based company had to reduce its workforce by 27% in December, slim down costs and abandon its gas distribution business.
There are further clouds on the horizon: farmers are revolting against climate policies from Poland to Spain, and other European startups, such as the UK’s Octopus Energy, are eager to enter the Spanish market.
“The energy transition needs CapEx [capital expenditure] investment, so that it costs a lot less to the consumer,” Pi says. “What costs money is to continue as we are. It’s not viable.”
London-based Artificial Labs, which automates the underwriting process for the likes of commercial insurers and brokers, raised £8m. Augmentum Fintech led the round and was joined by investors including MS&AD Ventures and FOMCAP.
Copenhagen-based Portchain, which uses AI to help ports improve the berth schedule of container ships and quayside operations, raised $5m. Angular Ventures led the round.
London-based TORTUS, which automates the clinical documentation process for clinicians, raised $4.2m in seed funding. Khosla Ventures led the round and was joined by investors including Entrepreneur First.
