How Much Europe's Founders Actually Earn (Spoiler: CPOs Earn the Most)

About this episode

A new study by Creandum sheds light on European founder salaries. The analysis of over 680 founders reveals surprising insights – and challenges several assumptions.

The Reality of Founder Salaries in Europe

How much should founders actually earn? This question occupies many entrepreneurs, especially in the early stages of their startup. Creandum's comprehensive report provides concrete numbers for the first time and shows significant differences depending on funding stage, industry, and location.

The median founder salary varies considerably between different development stages. Interestingly, bootstrap founders often earn similarly to seed-stage founders, showing that external capital isn't always the decisive factor for salary levels.

Funding Stage Determines Salary

The data shows a clear correlation between funding stage and compensation. From pre-seed to Series B, founder salaries develop continuously upward. Not only do funding amounts play a role, but team size also has a direct impact on salary levels.

With growing team size comes increased responsibility and correspondingly higher compensation for founders. This reflects the increasing complexity of company management as a small startup grows into a larger organization.

Gender Gap in Founder Compensation Too

An important aspect of the study concerns compensation differences between male and female founders. The data shows that a gender gap in compensation exists even in the startup space, highlighting the need for greater awareness and active countermeasures.

Equity as Long-term Wealth Building

While monthly salary is important for living expenses, the true wealth building of successful founders lies in equity. The study clearly shows that company shares and secondaries are significantly more important long-term than regular salary.

This aspect is often underestimated but represents the largest income source of a successful company. Founders should therefore always keep the equity component in mind during salary negotiations.

Geographic and Industry-Specific Differences

Not all regions and industries pay equally. The Creandum study reveals clear differences depending on where the startup is located and which sector it operates in. These insights are particularly valuable for founders who want to realistically assess their salary expectations.

Location and industry have direct influence on compensation structures, which should be considered in planning and budgeting.

The Surprising Role of the CPO

One of the most interesting findings of the study: The CEO doesn't necessarily always have the highest salary in the founding team. In fact, the Chief Product Officer (CPO) now often earns more than the CEO.

This development reflects the growing importance of product development in technology-driven startups. In an era where product excellence determines success or failure, those responsible for these areas are compensated accordingly.

Practical Assessment for Founders

The study offers founders valuable guidance for their own salary assessment. Instead of relying on gut feeling, concrete benchmarks can be used that consider various factors:

• –Company's funding stage
• –Team size
• –Geographic location
• –Industry affiliation
• –Role in the founding team

This data-driven approach helps not only with personal salary determination but also in conversations with investors and co-founders.

Conclusion: Developing Realistic Expectations

The Creandum report provides well-founded data on a topic often characterized by speculation. For founders, this means the opportunity to develop realistic salary expectations and make strategic decisions based on concrete market data.

It should never be forgotten: Monthly salary is just one component of total compensation. In the long term, equity determines the true financial success of a founder.