UK founders are being paid less than their counterparts across Europe, including those in France, Germany, Austria, Switzerland, and the Benelux nations, according to Creandum’s third annual report on early-stage founder compensation. 

While UK founder’s average salaries have gone up 16% since last year, founders in France have enjoyed a 60% pay rise, while those across the Benelux region, comprising Belgium, the Netherlands, and Luxembourg, have seen their average salaries increase by 90%.

This is despite UK startups acquiring a third of the continent’s VC funding last year – as much as French and German startups combined. 

Creandum’s data, compiled through a survey of 688 founders, shows that as European funding has begun returning to startups, salaries are increasing across all stages, except Series A, with the most significant raises being for founders at early stage companies.

For founders of bootstrapped and Pre-Seed startups, data shows that the median compensation was up by 138% and 40%, respectively, despite bonuses at Pre-Seed firms hitting just 5%. 

However, with bonuses making up 26% of salaries for bootstrapped founders, their total compensation is, on average, higher than their Pre-Seed and Seed counterparts, continuing a 2023 trend where bootstrapped founders were more likely to pay themselves a bonus. 

Salaries were found to peak towards Series B at a median of around €159,000 (£133,600), up 13% from last year, and, with bonuses, total compensation for founders at this stage has reached almost €200,000 (£168,200). 

The figures show that over 2024, around 45% of Series B founders received a bonus, a marked shift from a year ago, when just 20% of founders at this level took any bonus in an attempt to prioritise retention and cost cutting.

The gender pay gap continues to be an issue, with female founders at the Pre-Seed level being paid 23% less than their male counterparts. However, there are some small, but encouraging, signs of change, with pay gaps narrowing elsewhere.

Bootstrap female founders earn, on average, just 3% less than men, and women at Series B level 13% less. At the Seed and Series A stages, meanwhile, Creandum said that female founders were actually earning more than men.

The study also found that following a bumper year for European fintech, in which funding increased by 45% to $1.6 billion (£1.3 billion) in Q3 2024, fintech founders remain the highest earners at bootstrapped, Pre-Seed, and Seed stages.

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However, at the Series A and B stages, climate-tech and health-tech founders are now earning significantly more, with salaries reflecting a particularly positive year in these sectors. Those working in cleantech now earn median salaries of around €200,000 at Series B, while those in health bring in only slightly less, around €190,000 (£159,600).

Creandum’s report highlighted that salaries jumping later in the funding journey for these sectors reflects the upfront costs and longer timelines to profitability for health and climate-tech projects, with fintech founders benefiting from quicker paths to monetisation and lower capital needs.

“Few early-stage founders haven’t had to make tough decisions in recent years. Many startups that launched in the early 2020s did not make it through, while launching a new venture and attracting funding has been, until very recently, challenging,” the report concludes.

“This year’s report shows that founders reward themselves fairly for those efforts.  Or at least raise their salaries as their businesses grow.”