Why do VC partners earn significantly more than startup founders and employees, who are often paid minimal salaries?

VC (venture capital) partners earn significantly more than startup founders and employees due to the nature of their roles and responsibilities. VC partners typically invest in early-stage startups and provide funding, strategic guidance, and support to help those startups grow and succeed. In exchange for their investment, VC partners receive a percentage of the company's equity, which can be worth a significant amount if the startup becomes successful.

Startup founders and employees, on the other hand, are typically paid minimal salaries in the early stages of a startup's life cycle, as the company is often focused on reinvesting its revenue into growth and development. As the company grows and becomes more successful, founders and employees may receive higher salaries and equity compensation, but this is typically much less than what VC partners receive.

It's important to note that VC partners take on significant risk when investing in startups, as many startups fail and don't provide a return on investment. Additionally, VC firms have high overhead costs, including salaries for their own employees, office space, and other expenses. The high compensation for VC partners reflects the risk they take on and the value they provide to their investors and portfolio companies.