Significant Decline in Startup Founder Salaries: Pilot's 2025 Report Analysis

Pilot's 2025 Founder Salary Report

Introduction
The recent report released by Pilot, a prominent accounting firm for startups and small businesses, showcases a significant change in founder compensation trends amid evolving market conditions. The report captures data from nearly 2,000 founders and reveals a staggering 43% drop in median founder salaries over the past year. This shift appears to reflect an overarching concern with capital efficiency and financial prudence in a climate where venture capital has become harder to secure.

Key Findings
Waseem Daher, co-founder and executive chair of Pilot, remarked, "The data is super clear—founders are rethinking compensation." The surge toward smarter financial decisions is evident as founders aim to extend their operational runways while balancing reasonable personal remuneration. Below are the critical findings from the report:

1. Median Salary Decrease
The median salary for founders plummeted from $132,000 in 2024 to just $75,000 in 2025. The report notes a robust increase in the number of founders opting to pay themselves less than $100,000 per year—rising from 37% to 60%.

2. Fewer Founders Taking Zero Salary
Interestingly, there has also been a decrease in the percentage of founders who report taking no salary—now at 5.4%, a drop from 9% last year. This trend illustrates the growing necessity for founders to at least draw some compensation amid challenging financing conditions.

3. Capital Crunch and Increased Bootstrapping
The present venture capital landscape has prompted founders to bootstrap more. As the wait times between funding rounds grow and financial backing becomes scarce, many founders are turning to self-funding strategies, which often leads them to adopt lower salary levels.

4. AI Founders Among the Exception
A fascinating exception emerges in the realm of artificial intelligence (AI) startups. Founders in this sector reported a median salary of $90,000, a clear deviation from the downward trend impacting most other industries. This increase coincides with a growing excitement from investors for AI solutions, indicating a robust niche still attracting funding.

5. Rise in Bootstrapped Ventures
Bootstrapped companies have risen to represent 18% of the surveyed workforce, marking a 77% increase from the previous year. The entrepreneurial community's shift towards self-sustainability reveals adaptive strategies in response to funding challenges.

6. Salary Determination Methods
About 31% of founders claimed their salaries were based on the financial capabilities of their startups. In contrast, founders who benchmarked their pay against industry standards earned significantly more—79% on average—indicating a notable variance in compensation tied to strategic salary setting.

Conclusion
Daher concludes, "Understanding your position within today's capital-efficient landscape is crucial for building resilient companies during tough times." The report emphasizes that it’s not merely about slashing costs but about making informed decisions that support long-term growth and survive static or downturned markets.

Pilot specializes in providing services for startups, aiding them with expert bookkeeping and financial insights that enable founders to concentrate on their core business goal of growth. For further insights, the complete survey is accessible at pilot.com/fsr.