Equity distribution · Founder equity

What would a fair equity split be for a potential tech Co-Founder or is what I need considered a Co-Founder.

Marcel Freund Founder and CEO

December 9th, 2020

I had an idea and hired 2 developers to create the app while being the sole Founder. I put in all the money to the app so far and once done I will be in for around $100,000.

My questions are as follow;

1) If a Technical CO-Founder comes in at the stage I am in now (app is halfway done) and completes the project by himself and putting in sweat equity what would be a fair range of equity to give him?

2) The second scenario is that if I complete the app and it is on the market what is a fair range of equity to give him? Should he get a salary? Is he considered a Co-Founder at this point?

Thanks for the answers in advance.

Frank Demmler Managing Director at Riverfront Ventures

December 10th, 2020

Quick reactions:

  • You need to know what a founder is and isn't. These questions are unnerving in that respect. You need to up your game.
  • Does this person possess uniques skills or experiences that are essential to the company? Could you find someone with adequate assets on the open market? If essential, that bolsters the co-founder argument, and vice versa.
  • Compensation is considered in the context of the company's cash position. If it's running on fumes and he is willing to come onboard without compensation, another co-founder checkmark.

Kotha Abhinay reddy I want to start my startup

December 10th, 2020

Don't give them equity give them good remuneration equity price can increase in future where you can have more funds.

Marcel Freund Founder and CEO

December 10th, 2020

@frank that is my question and the reason why I am asking it. I explained my situation and wanted to receive an answer because I am asking this question to up my game.

With all due respect the answer you gave me is not an answer.