Re:Another reason many startup founders are young - salary
by anamax on Tuesday September 25, 2007 @06:39PM
(#59592)
"older" isn't the relevant factor, and neither is market value.
First "market value". All other things being equal, someone who has a typical salary of 300k has a lot more opportunity to save for a couple of years of no salary and will find it easier to come back to a decent salary if the startup fails than someone who only makes 20k.
However, all other things are not equal. The relevant factor is overhead. Overhead is associated with age but isn't determined by age. For example, young folks supporting other folks have exactly the same problem as older folks supporting other folks.
Note that overhead is typically the result of choices and comes with benefits. Those with less overhead typically made different choices and don't get the benefits. Also, "young founders" are often delaying overhead.
Note that overhead contributes little/nothing to a startup's odds of success.
BTW - One could argue that the market actually undervalues not-yet-known-to-be-successful 22 year old founders.
First "market value". All other things being equal, someone who has a typical salary of 300k has a lot more opportunity to save for a couple of years of no salary and will find it easier to come back to a decent salary if the startup fails than someone who only makes 20k.
However, all other things are not equal. The relevant factor is overhead. Overhead is associated with age but isn't determined by age. For example, young folks supporting other folks have exactly the same problem as older folks supporting other folks.
Note that overhead is typically the result of choices and comes with benefits. Those with less overhead typically made different choices and don't get the benefits. Also, "young founders" are often delaying overhead.
Note that overhead contributes little/nothing to a startup's odds of success.
BTW - One could argue that the market actually undervalues not-yet-known-to-be-successful 22 year old founders.