Re:Ask HN: What equity percentage for a co-founder joining a...
by jaydub on Wednesday December 02, 2009 @09:45AM
(#972090)
Great point.
I can imagine how "Bob" must feel. But execution on the idea is the most important thing.
Until you've created version 1, you're still at the theoretical stage. And while in theory you may see your company being worth (m|b)illions in a few years, the reality is that you need to implement.
Again, like brk suggests, why get mired in an argument over whether you control 100% or 90% of "0". Building a startup and creating value is a lot harder said than done I would imagine. Use your judgement and do whatever it takes to get the best person on board.
He damn well better, otherwise, what's the point?
This "how much equity" thing comes up ALL the time here. There is no pat answer, but it often seems like every founder/co-founder and first employee has delusions of grandeur about the whole thing.
I'd guarantee that whatever risks you eliminate now are less than 5% of the risks and roadblocks you'll have to knock down in the next year. In otherwords, until you have a product and customer and enough data to make a real extrapolation from, your value is essentially 0.
Alice's risk is exactly the same before or after Bob addresses these theoretical risks.
If Bob wants to haggle over small equity proportions now he probably has his head up his ass.