Definitely not always, but more often than it should be. I had this experience once - a family of people that already had money that were obsessed with "running their own business" off the backs of others. They didn't even contribute the money they had. All exploitation. Fortunately I shut it down and walked away with code. It was useless code, but at least I was also able to waste their time on top of my own.
My default mode as a technical person now is to vet the person actually has something they can bring. If they do less than bring us customers before we have a finished product, they've failed. I expect them to make connections and sell what we don't even have. That way I know we can both make something from nothing - the key ingredient to liftoff.
Nobody's ever come even close to that. It takes zero coding to have those things already started, and yet nobody even goes down that path before looking for a "code monkey."
Why do you think we got learnt game dev/programming ourselves? Probably because we too had an idea we wanted to make a reality, so why would we put that on hold to make someone else's idea without some other incentive?
In a sense you are lucky in a situation like this -- that have self-selected themselves out w/o any effort from you. Technologists dont need anyone with that little motivation sharing equity. Better to know that at the start.
When you are paid in equity, the non-technical cofounder doesn't have all of the upside. But I completely agree that both parties need to bring something to the table at the beginning. It can't be "you build something and then after you've done that I'll go sell it". Both founders need to be putting in sweat equity simultaneously, to align incentives.
I think they believe in the "Build it and they will come" and then they just coordinate and tell you what to do afterwards, rather than making hundreds of cold calls (i.e. grinding).
I've similarly had so many technical friends burnt by this.
My new suggestion for "business co-founders" pitching ideas to technical friends where "business co-founders" propose techies do all the upfront work is --
If you have no Purchase Orders, no Funding, no Transact-able Relationships, no prior wins (esp publicly verifiable wins) -- then you put in money. Find some reasonable rate you pay for the upfront technical work. This "balances out" the skin in the game. If they have no money, i'd half-seriously suggest they go borrow money to pay the technical co-founder.
They need some risk, some skin in the game to make this an equal effort.
That's a good way to put it. I'll remember that. Thanks!
The big smell here is offering not-equal equity to technical cofounders who join early (first year). YC's proposed solution for later joining cofounders is just to give them equal equity but start their vest later, which I find very incentive aligning. The usual explanation is that they've done all the "market research + product/idea development" already, which is useless.
So yeah, the expectation is that I will build the whole project, drive product decisions, help hiring the rest of the eng staff, spend the next 1-2 years basically working on this project 24/7. They keep 99% and I get 1%. Great, thanks.
I get calls weekly from people seeking technical co-founders. The biggest thing most CTO candidates dont realize is the power they have -- unless the "business co-founder" is actually bringing something to the table.
I'd LOVE to work with a "Business co-founder" who actually brings Purchase Orders, Funding, Transact-able Relationships, prior wins (esp publicly verifiable wins). That would be a dream.
It makes no sense to work with a "Business co-founder" who wants ME to put in hundreds of hours of technical work -- upfront -- often for equity "e.g., free" -- and retains the right to take all the upside and has none of the downside. Why would I need a "Business Co-Founder" at all in that case, I might as well be the only founder and recruit later.
I see tons of friends burnt by these types of "deals." The biggest red-flag is when the "Business co-founder" still has a job and no real skin in the game.