The startup I work for as a low level executive just closed Series B in the past 3 months after a successful series A last year or the year before.
Our customer base has grown about 800% and along with that so have the amount I have to work, manage, and responsibilities.
I’m already getting paid pretty well, maybe 50k less than market - but would it be appropriate to ask for a compensation review after Series B? Or do boards / investors not like to see new Series money going to increasing existing engineers / executives pay?
I’m just working so much (10-12hr days, 6-7 days a week) and pretty much on call 24/7 which has only grown with our growth.
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It’s absolutely worth the request. Can’t guarantee the outcome. But if things are up and to the right, investors don’t have a lot of reason to apply pressure about these things. They’re just along for the ride.
Whatever financial models and hiring plans they reviewed in due diligence before investing likely already forecasted internal promotions into that plan. In fact, if the founders didn’t for some reason, that would be a good opportunity for an investor to demonstrate value but dropping a lecture on the importance of team culture and employee retention, even if its only lip service to them in practice.
The bigger issue you’re likely to run into is that your HR team is likely young and small… two, maybe three people now? They likely have to double or triple the organization’s headcount with this round of funding. Their first goal will be to formalize new employee onboarding, then secondly make high priority hires, and thirdly standardize promotion schedules.
Either way its probably a good time to make the inquiry, but it could be another 6-12 months before they get their ducks in a row and you get your pay bump.
Get as much as possible. VC is a gun to your head.