Re:Ask YC: What's a reasonable share of equity to get as the...
by anamax on Monday October 29, 2007 @10:00PM
(#74048)
It's not the title, it's the reward for risk and contribution.
Right now, it's an unfundable idea. If his contribution makes it fundable, that's significant.
Re:Ask YC: What's a reasonable share of equity to get as the...
by sbraford on Tuesday October 30, 2007 @06:33PM
(#74403)
brk - yup, there very well indeed may be more factors to consider.
I'm with several other posters on this one:
- 2% + a modest first-developer salary is totally reasonable (some would even consider 2% high here)
- 2% + $0 is a fool's bargain indeed
Any remotely successful entrepreneur could scrape up at the very least $5-10k to get a prototype working. These potential co-founders sound more like guys with an idea who just want someone to develop it for them (do much of the hard work), while paying / cutting in equity wise very little.
These guys don't sound like they can be bargained with, but the developer could ask for $200k in cash compensation if/when the startup gets funded. (doubtful they'd go for this)
I hack a fair bit (mostly LAMP, where P = perl). I've created a few apps, both web and desktop, and have built a few various departments for companies, and have hired hackers in the past to work for me.
I've been on both sides of this 2% equity "problem".
If you guys all want to rally around the idea that the first developer in any startup is worth a double-digit stake based on nothing other than a spirit of camaraderie, that's fine with me, and I'm not offended by being modded down.
If you look at my various posts, I never said this guy WASN'T worth more than 2%, but I did say that there are more factors to consider.
Anyway, thanks for the info.