I worked with a few venture firms last summer and got to meet a lot of the entrepreneurs they've funded. Most of them were working out of a angel or seed round and all were being paid.
The understanding is that you as the entrepreneur will put in 100% (more like 150%) of your effort & time into the company so, naturally, that eliminates other direct work for a source of income. The venture firm was providing them a salary but it was always explained as just enough to cover living expenses (rent, food, car, etc). In terms of numbers, this will obviously vary greatly depending on cost of living in your area but consider what would be just enough for a modest life.
Taking as little money as possible from the round for a salary is actually in the best interests of the entrepreneur as well. The money raised early on is very "expensive" in terms of equity given up for it. If you truly believe in your company and idea, you'll realize that the 40K or 60K salary you want now actually costs you $400K if/when you exit or IPO. Of course, this is just an sample, optimistic scenario but hopefully you see my point.
The understanding is that you as the entrepreneur will put in 100% (more like 150%) of your effort & time into the company so, naturally, that eliminates other direct work for a source of income. The venture firm was providing them a salary but it was always explained as just enough to cover living expenses (rent, food, car, etc). In terms of numbers, this will obviously vary greatly depending on cost of living in your area but consider what would be just enough for a modest life.
Taking as little money as possible from the round for a salary is actually in the best interests of the entrepreneur as well. The money raised early on is very "expensive" in terms of equity given up for it. If you truly believe in your company and idea, you'll realize that the 40K or 60K salary you want now actually costs you $400K if/when you exit or IPO. Of course, this is just an sample, optimistic scenario but hopefully you see my point.