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October 27th, 2015

Thank you.

Jon Lawrence Tech and media do-er of things.

October 27th, 2015

Wait, what? He wants to work full-time *only* when there is a salary being paid to him, AND he wants majority ownership?

RUN AWAY. That's not a recipe for success.

Jon Lawrence Tech and media do-er of things.

October 27th, 2015

Another one to help (free) is: http://foundrs.com/

Zvi CFA Senior Quantitative Analyst | Data Scientist

October 27th, 2015

First, take a look at the fantastic The Founder's Dilemmas, by HBS Prof. Wasserman. Basically, the full-time/part-time split is going to be very difficult to sustain. It will be hard to balance time vs. contribution and translate those into equity stakes. You should start with you owning the entire thing, and give your part-time helper equity as time goes on, based on hitting some milestones and time-commitment requirements. That way, you make sure he stays engaged. Don't forget that equity stakes are almost always re-negotiated once VC's start to take control of the company. That means that you should both include in your contracts willingness to re-negotiate stakes if required for funding. z

Dennis Robinson Founder, svedu

October 27th, 2015

Look into the dynamic equity split model: http://techcrunch.com/2013/02/09/the-perfect-cap-table/

Matthew Mausner

October 27th, 2015

if he literally wants to be majority, as in more than you, that's so wildly unrealistic that you should cut bait right away. If his assumption is 50/50, as the above reasons indicate, that should be modified by any of those models mentioned (eg Wasserman), with things like vesting cliffs and such as well. Is he putting up the cash for any of your expenses (server costs, business cards and brochures, etc.), or is that all you as well?
Having 'a partner' who you know is committed, will share the stress and responsibility and stay up all night making presentations happen, updating the website, delivering for your first customers... is verrrrrry important, but it doesn't automatically mean 50/50.

Todd Kovalsky

October 27th, 2015

My question to you is, who is responsible for sales? if you, I would say this person is an advisor and not much else. Best regards, Todd Kovalsky 917-601-4103

Kevin Carney Content Marketing works, but needs better tools.

October 27th, 2015

I recently read a very interesting book that addresses this very question. It defines what seems like a very sensible method of sharing equity based on actual contributions.

http://www.amazon.com/gp/aw/d/B0096EFHBI?ie=UTF8&redirectFromSS=1&pc_redir=T1&noEncodingTag=1&fp=1

Dina Destreza Digital Content Manager at Keyideas Infotech

October 27th, 2015

Great venture Nerea. Design and Operation aren't exclusive of each other. I do understand that you are working full time for 8 to 10 hours a day. You might feel that you need a major stake in it. It would good if you can get your friend's opinion on the percentage of a stake. If you feel that he is asking too much, you can talk of it. Be generous if he is asking less because it's very natural to work passionately for someone who is generous. Good Luck Nerea.

Dina Destreza Digital Content Manager at Keyideas Infotech

October 30th, 2015

I do understand Nerea. It is always good to talk and interact. Because lot of misunderstandings and perceptions can be cleared through an interaction. I would suggest not to delay your interaction because the more it gets delayed, the more difficult it would be for you to keep on trusting him. Good Luck Nerea. Regards, Dina

Rob G

October 29th, 2015

@ Peter, the problem with looking only at "outputs" rather "inputs" is that this situation as is almost always the case for equity splits/options, is that equity discussions are forward looking rather than backward looking. If Nerea can wait until after this potential partner has actually grown the business due to his participation that would be ideal for Nerea - like paying sales people for performance. But Nerea wants to have the discussion now - trying to anticipate the value he will bring to the venture in the future. If she can convince him to wait until he's proven his value then more power to her.

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