After having built 9 startups I can tell you that any BD position should be base on performance. BD is critical in the launching of your group.
Offer instead of hard equity (founder or preferred shares).. think about revenue shares. That means shares grow with performance based their activities.
For example let say your company could realize 1million dollars revenue at the end of year one. your valuation would be 25x of year end net income.. let say net income was 60% revenue = $600K
x 25 = $15mm valuation
REVENUE SHARING PAYMENT - Participation in gross annual Company revenues at
the rate of .01% per Unit per year, continuing for a total of five calendar years for a
total of five (5) payments. The Company will make a cash payment of revenue sharing
to the investor at end of each of these five calendar years. After the five revenue
payments, the Units will be retired, with no further payments being due from your company
with respect to the Units. Share value would be $150 for example
EQUITY CONVERSION OPTION - At the time of each revenue payment, the share holder
has the option to convert any portion of the revenue payment to equity, up to a
maximum of .01% of equity per Unit over any 12-month period. The conversion
formula is the investor's chosen share of the annual revenue payment divided by the
Valuation, which is calculated as twenty-five times (25X) the Company's trailing
calendar year Net Income.
You can use this as your company dollars to acquire talent and reduce dilution until those persons helping you show performance (your matrix of performance can be agreed upon basis of work time, deals closed or other value points such as strategic partner deal, channels and or acquisition/merger.
In the near term your BD andadditionalkeypersonnel will be put into the risk area that you have and are rewarded on performance. Little Red hen offering. "help me make the pie..you get a piece.