The founders of a new firm generally receive:

Question

Quizplus · Accepted Answer

Generally, during the early stages of venture capital financing, founders receive minimal salaries as the focus is on using the funding to develop the business. Seed money refers to the initial capital contributed to a business to start operations, but it is not the compensation received by the founders. A sizeable salary may come later in the financing stages, but it is not guaranteed. Founders do not receive a fixed percentage of all venture capital raised and the funding is not typically used to pay off their personal obligations.

The Founders of a New Firm Generally Receive