Equity distribution · Partnerships

I am coder people come to me and ask for work on their tech product equity basis in such case what should be term and condition.

preeti panchal Founder and CEO of Sharkbie Technologies/looking for Business developer

March 22nd, 2020


Cristus Cleetus CTO and Innovative Product Developer

March 22nd, 2020

Well in these cases you would be looking at unpaid work, and since you are giving your time and energy towards the development of a product, you should make sure the equity that the terms are those which value what you have invested in this project. Usually, you can ask for equity in their company and it should not be less than 8% and if your role goes up to a CTO level, it can go up to 15%. It all depends on your contribution and what it costs you.


Make sure you validate the business model before you jump into it. Because if you are not able to make ends meet and you take up projects on an equity basis, you may lose the interest to keep it going.


Other terms could be about the use of the intellectual properties you develop for the project, it should be drafted in such a way, you wont get into trouble tomorrow, you have to work on another project, and it happens after either this product development drops halfway or something goes wrong.


These are two aspects that I can think of quickly.

Yegor Isaev Co-founder at GodMode, CFO at StudyFree, ex-Deloitte, ex-RDIF

March 23rd, 2020

Long story short it really depends on the stage of the project and the level of your involvement.


In most cases, people are looking not only for those who can write the code but also for someone who may assist in product/customer development and hypothesis testing.


If it's pre-MVP (pure) stage, it's common to ask for 20-40% in the company given that you both write the code and assist in customer development. If you are a pure developer I would target up to 15%.


If it's a project with solid traction, proven hypothesis, and revenue, then it's a different story. In this case, most of the work has already been done and you do not take the same risk. I would expect to get not more than 4-6%.

Prakash Salve Programmer by heart, Robotics and Automation enthusiast

March 24th, 2020

Are you interested in such people?


See we have very limited time and as a programmer or coder or developer, you would prefer to create software solutions rather being partnered. I don't know your future goals and therefore may be wrong.


But, if you don't want to become partner then clearly mention the reasons. The people will understand and won't request such conditions.


If you, however, still prefer to create partnership, then my advise is to connect with legal adviser. He may create formal legal contract papers that should be presented and signed.


At last, remember not all tech products are profitable in the end. Be careful.

Edward de Jong Software designer and developer, programming language designer

March 24th, 2020

This type of arrangement is ripe for abuse. Equity in a startup has to be viewed as a roulette wheel spin; no better than 1 out of 36 chance of getting anything. So best work for a mix of reduced pay and equity so you at least are covered somewhat. Equity in beginning companies is fraught with peril. The number of shares issued will typically increase, and a 5% share might turn out to be 0.005% when all the money is poured in. In today's world, the money people get most of the pie, and the brains and sweat are not valued that well. You will see other comments that "developers are dime a dozen", when in reality a good developer is most of the company's worth. This is why many of the biggest successful firms today are led by programmers: Musk at Tesla, Dorsey at Square and Twitter.

Douglas Swanson entreprenuer + programmer

March 25th, 2020

I don't have an answer

but am thankful to those

who do as I have that question. 👍 Thanks

Also I could be very generous to some one

(a percentage) who could simply get me past

the Google App signing process. For a game App

I have created.

STEVE OMANS CEO at Total Hospitals- Revenue Cycle Management, HCIT and Population Health Analytics

March 26th, 2020

If your a CTO request 50%. I am looking for CTO Co-Founder and willing to give 50%. I am not engineer or programmer, but I have been in healthcare and payers for 15 years. I just need a good full stack programmer/ AI/ Cloud etc., that can build wire to frame with my customers.

John Corry Software Engineer, Tools at Yik Yak, Inc.

March 25th, 2020

@Tom Jay wins with that response 😂😂😂

Andy Freeman Product Management and ... - Looking for new opportunities

March 25th, 2020

Jay is wrong. The idea is almost useless.


I see hundreds of startups a year. I see the same idea many times, but only one succeeds.


Some fail because they think that development is an inexpensive commodity. They get a $100 app and it can't handle the minimal load that they manage to get. (Pretty UIs from a template are inexpensive, but they're rarely good.)


Most fail because they can't get customers. The successful ones prove that the customers are out there, but "the idea is the important thing" folk never seem to be able to find customers.