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You can get coworking spaces for ~$300-500+/month per desk, sometimes more for dedicated space. For a funded startup, I've heard that you should budget ~100+ square feet per employee, and rents in SF are in the $50 (very low) to $100 / square foot/year range.

How much are you paying your engineers? 3% of burn sounds pretty low, but it's not completely out of the range of what I just penciled in here. (I was prepared to disagree... but the numbers aren't crazy on either side.)




We pay our engineers near or maybe a bit below the average for the Los Angeles metro area. Our coworking space is a bit cheaper than what you quoted, but not radically so. We pay about $800/month for three desks, storage space, and amenities.

Our #1 expense by a massive margin is employees and associated benefits. #2 is probably the combined cost of hosting and SaaS services we use (AWS/OVH/DO/Vultr, Gusto, Xero, Slack, Zendesk, etc.). #3 is probably a tie between travel and other incidentals like accounting and computer hardware, and our coworking space. The rest is change.

I guess some people just splurge on office space. I don't know what kind of office you'd have to be getting for it to even approach labor cost for a startup. Personally if I were an investor I'd do everything I could to veto that since it's insane and wasteful.

Does it help with recruitment? Maybe, but personally I'd rather work for a hip company in a garage than a boring company in a posh office. Maybe that's the problem.




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