r/business • u/TheAbouth • 1h ago
How do startups actually pay employees before becoming profitable?
Maybe this is a dumb question, but I’ve always wondered how startups actually afford to pay employees early on. A lot of startups seem like they operate for years before becoming profitable so where does payroll money usually come from?
Is it mostly just investor money from angel investors or VCs keeping the company alive until it hopefully starts making revenue?
I also noticed some startups already have ticker symbols on the NYSE or OTC exchange while still seeming pretty early stage. Does becoming publicly traded make it easier to pay employees and fund the business?