Founders of Indian startup companies pay themselves the least in the world, according to a study released by Compass. Indian founders take home an average of $30,208 per year (about Rs 19 lakh). Their peers in Silicon Valley average salaries at $57,203 per year while Australia is the highest at $72,363 per year.
According to the study, about 92 per cent of Indian founders take home average salaries at $30,208 or Rs 19 lakh per year. That works out to a little over Rs 1.5 lakh a month, which pretty much covers the bills in most Indian cities.
The premise of the Compass study, which surveyed more than 11,000 startups globally, is that the leaner the founder salaries, the higher the chances of startup success. This was an idea that was first articulated in 2008 by PayPal co-founder and venture capitalist Peter Thiel.
More from the survey:
73 per cent of founders pay themselves less than $50,000 per year, whether their company has been funded or not (not including any ownership stake or additional benefits).
Average salaries ranged from a low of $30,208 in India to a high of $72,363 in Australia, and as a ratio to funding ranged from 1.98 per cent in Silicon Valley to 4.8 per cent in Australia.
Survey details: 11,160 founders provided their salary ranges in USD equivalents. For this particular survey, we did not ask for options or additional benefits. All null values were removed. Averages were estimated based on the midpoint of each range and applied equally to all geographies. All ecosystem breakdowns include responses from at least 75 companies.
Images/ Graphs credit: Compass