It can't tell you how many times I've talked to potential co-founders who were a pair of frat boy types who had business school degrees. They pitch their idea as if it were a company, but all they have are some powerpoint and a few phone calls under their belt. They wanted to be CEO and "VP Sales" and would be happy to let me be CTO, they just want the to build the product and engineering team and for that-- because they liked me so much-- they'd let me have %5 of the company! (Vesting of course, one year cliff.)
They don't understand when I laugh at them... and I think its because there are too many suckers out there and they soon find one.
"Hrm, great, but what have you been smoking. Your business idea sounds like something a 5 year old drew in Crayola after watching an episode of shark tank. Your equity won't buy you a roll of single-ply toilet paper if you had a coupon. You're starting a startup, which is the most blunt force trauma way of getting paid market rate, and your (business) degree...well, it's worth less than your equity . That network you built whilst doing case studies on Apple is going to help you as much as a lifeboat in the Sahara. Only thing you have is a bit of hustle, and there's people running fruit-stands in shenzhen that have more of it than you. Sit down, shut up and do things, and maybe in 5 years you'll make a decent founder."
I mean you'd hope that it'd stick, but it doesn't. Nothing more infuriating than people talking the talk whilst you're walking the walk. My reading list is longer than your business plan, so fermez la porte and do stuff instead of distracting me whilst I'm trying to work.
It's really weird. /rant
I'm aware that it might be angry and off-topic, but I thought some parts fit the "straight outta b1zn3zsk00l" people.
Why infurating? Are you expecting them to appreciate you for how awesome you are? It's almost never going to happen, even if you are truly awesome - that's just how people are.
The solution is to not have business conversation with people you consider clueless about business. Talk to them about football or whatever if you like them and want to maintain a friendship, or simply don't talk to them at all.
But I do think that people like that are harmful, and that they need a good blunt reality check.
Granted, it's easier to be a useless biz guy than it is to be a useless developer since there's no litmus test for the former, but it's absolutely true that both exist. Your goal is to steer far clear of them.
In my experience this is frequently an unstated source of contention and unaligned expectations between engineering and business sides of the organization and one that is very useful (and liberating!) to get aligned on from the outset of a venture. And frequently, compensation structure is a useful part of that alignment: if you will also benefit from the time to market, that tradeoff feels less like someone asking you to make more work for yourself or others down the road (in the form of ops or rewriting)
Obviously both a business person and an engineer will have value in a venture. There's nothing wrong with both types negotiating and asking for their fair share.
"a pair of frat boy types who had business school degrees."
"They pitch their idea as if it were a company, but all they have are some powerpoint and a few phone calls under their belt."
"They don't understand when I laugh at them..."
I do not want to disregard anyone's skills, technical of business. Even if the GP is right that those guys where frat boys, they probably had valuable connections to bring into the table. But it is not fair that biz types hide behing the "salary" argument to shortchange engineers.
They are not just bringing early employees, they were looking for their CTO, for goodness sake! I am ok with not offering an "equal partners" deal, but it has to be partners. IF they are so wonderful business types, they why they do not get a Series A round without a product and then hire an employee CTO with a matching salary?
I will answer you why, and it is the same reason why engineers should not demand millionaire salaries. It is because your contribution's worth zero if it is not leveraged by the contribution of the other partner.