How early-stage founders attract seed VC interest through executive assistants, competitive salaries, and unique perks
Jenny Fielding, co-founder of Everywhere Ventures and former Techstars managing director, trolled X by asking, “Y’all have strong opinions about pre-seed founders who have EAs to help them schedule? Just checking”
Fielding acknowledged that the post was “a little bit snarky” in an interview with TechCrunch; however, it elicited a significant response. Certain individuals suggested that early-stage founders could simply employ AI executive assistants.
Others became incensed when a venture capitalist suggested that they should not employ a human to assist, even during the initial phases of their business.
Fielding’s contention, however, was that founders continue to harbor certain misconceptions regarding appropriate cash management, particularly during the early stages of a startup, when revenue is limited, that were prevalent during the excess funding period of 2020-2021.
That is when companies focus on the fundamentals of developing a product consumers are willing to purchase.
“I was the founder.” “I founded two businesses,” she stated. “Subsequently, I dedicated seven and a half years to Techstars, where I provided invaluable assistance to organizations that were undergoing significant transformations.”
Consequently, she endeavors to provide entrepreneurs with the accurate information they require rather than the ambiguous information, and she chuckles.
Even if the VC is essentially a silent partner, early-stage VCs will still evaluate founders’ cash management, even though most seed investors, including Fielding, believe that founders should spend their raised cash “how they want to.”
“We make investments at the initial stages.” We do not accept positions on boards. This money is being confided in the proprietors. Fielding stated, “We review the operating budget and engage in quarterly talks with them.”
The startup’s judgments will be realized when it is required to finance its next round and desires its seed/pre-seed VCs to provide them with warm introductions and enthusiastic recommendations to the next group of investors.
Therefore, executive assistants may prove advantageous in established organizations; however, they are operational overhead positions rather than individuals who contribute to developing and maintaining the initial product.
In addition to the CEO’s EA, additional titles at an early-stage venture may serve as a “red flag” to VCs: COO and CFO.
“Frequently, it is a third co-founder who is uncertain about their role,” she stated, noting that third-wheel co-founders can be “expensive” regarding salaries and stock.
“You must first create a product and subsequently attract customers.” I am uncertain as to whether the organizational structure of a CFO and COO is necessary.
This raises the salaries themselves. This is another instance in which early investors may remain silent but actively monitor the situation. Fielding terminated the agreement after she examined the startup’s operating expenditures and discovered that “the founder was paying himself $300,000,” she stated.
Although the remuneration may be equivalent to the previous Google or Microsoft position, she recommended that a reasonable salary at the pre-seed level be between $85,000 and $125,000.
It is a matter of mathematics. Even though a founder has raised a substantial $1 million in pre-seed funding, they have already expended a fifth of the funds by paying themselves $200,000.
“We are not advocating that you make $100,000 indefinitely,” she cautioned, but at this early juncture, “you simply do not have the funds to spend.”
