7 UK Term Sheet Statistics on Founder Compensation
Starting a company is a fine balance of risk and reward. New founders have probably left a salaried job, and are using their savings to start building your vision.
After bootstrapping the business to a point, they raise funds to accelerate growth and development. Bootstrapping founders often don’t pay themselves a salary. But what happens once there’s cash in the business post-funding? And how are founder shares fairly distributed to ensure early angel investors and founders are aligned?
SeedLegals has run the numbers to find out. By leveraging data points collected from hundreds of UK funding rounds on their platform, and with circa 50% of the user-base raising their first or second funding round – this is a rare glimpse into early stage funding deal terms in the UK.
Here’s a look into what’s being agreed behind the scenes in these early, but crucial, first investment negotiations. Read more.