How much money do startup founders make when they get funded by investors?
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Investors don’t invest in startup founders, they invest in startups. Their goal is to provide funding to early-stage companies to support their growth. The hope is that the company will experience rapid growth, allowing investors to sell their shares and generate a significant return on investment.
Investors typically want all of the funding to go towards the company and its growth, rather than towards salaries for the founders. This is because they want the founders to stay motivated and focused on building the business, rather than cashing out too early. Investors want to ensure that their investment is being used wisely to support the company’s success.