Startup Compensation Snapshot, Bootstrapped VS VC-Backed Growth, Revenues to Go Public, CEO Age at IPO & More
Digesting Insights From the Data
👋 Hi, I’m Andre and welcome to my newsletter Data-driven VC which is all about becoming a better investor with data & AI. Every Tuesday, I publish “Insights” to digest the most relevant startup research & reports. Every Thursday, I publish “Essays” that cover hands-on insights about data-driven innovation & AI in VC, and every Sunday, I publish “Picks” to spotlight the hottest Stealth, Early, and Growth Startups. Follow along to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
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The Age of Unicorn Founders at IPO
The age of unicorn founders at their company's IPO spans from 23 to 85 years. A study by Stanford University's Venture Capital Initiative highlights fascinating insights into the demographics of these founders:
Average Founder Age: The average age of founders at IPO is 45, with most falling between 35-50 years.
Youngest Founders: 15% were younger than 35, with Justin Waldron of Zynga being the youngest at 23.
Older Founders: 21% were between 50 and 65, and 4% were over 65, with William Davidow and Rodney Perkins being the oldest at 85.
✈️ KEY TAKEAWAYS
Unicorn founders at IPO showcase a broad age range, from youthful innovators to seasoned entrepreneurs, with significant contributions from founders aged both under 35 and over 65.
Startup Compensation in H1 2024: Stability Amidst Change
Carta's recent report highlights trends in startup compensation for the first half of 2024. The report shows that while some salary benchmarks have shifted, the overall compensation landscape remains stable.
Salary Adjustments: Median salaries have remained consistent, with only minor adjustments in various sectors. This also means that they were not adjusted for inflation.
Equity Packages: The average size of equity packages has stabilized at 0.25% for non-executive roles.
Hiring Trends: Hiring rates dropped by 30% in January compared to last year, with fewer new hires across startups and stages.
✈️ KEY TAKEAWAYS
Startup compensation has stabilized in terms of salaries and equity, while hiring rates have significantly decreased, reflecting cautious growth strategies in the sector.
Does Having a Founder CEO Matter for Post-IPO Performance?
A study by Ilya Strebulaev investigated 260 unicorns to see whether a founder CEO at IPO influences subsequent stock returns. The findings suggest no significant difference between founder and non-founder CEOs: