The current startup I am building came to me in an unusual way.
The original founder (and friend of mine) came up with the idea, name and initial business model. Then some months back, he pivoted his attention and energies into a different business. At that point I was already on board, passionately convicted on the idea and hungry to build it.
So I offered to take it over and he agreed. Now we’ve drafted a stock transfer agreement to put ownership under my name.
I wanted to ask - how much equity should my friend retain? He’s a super sharp guy who only wants a minor role. He also wants his piece to be small enough that it still makes sense and is attractive to future investors. His suggestion was somewhere between 3 and 5%.
Cheers in advance for the guidance and being awesome.