I'm the co-founder and Managing Director of a start up backed by angel money. There are three partners. I run the day to day business and moved it from launch to major player in the market in a period of 10 months. One partner has only put in money, the other money and some time. A few hours a week. I've put in no money, work start up hours (70+ per week). I've taken a monthly draw from the fund of about 25% of market value for my skill set.
Now there is second round finance coming in and the shareholder agreement between the founders is still not finalized. I'm asking for 10% immediately with options on another 10% linked to performance. No salary increase for 12 months. Prior to dilution there was 30% on the table. The new investor changes all of that. Any suggestions? Other than telling me that we should have finished the first share agreement long ago!
You should have figured this out when you started, not after it's been running for nearly a year. (Had to get that out of the way first.)
With that in mind, figure everything out - who owns what % - right now - before the new investor comes in. Divide everything up between the 3 of you or however many are involved. When the new investor comes in he will then dilute everyone appropriately. If you want an option pool set shares aside at the same time the new investor comes in (which will also dilute everyone previous to the new investor).
You can then use that option pool for any performance based bonuses.
I think it would be easier to figure out what the landscape should look like without this new guy, then factor him in after the initial stage is set.
If I read into this, you will be the CEO of this venture, once the new investors come in.
First off, get a reasonable salary. You should get paid more than 25% of your market rate.
Second, the percentages seem OK. Typical CEO percentages range from 5-10%, as the rounds go on (sometimes, even when things start to get diluted).
Before this new investor comes in, you should finalize the first share agreement. That way, there is no question of the deal and it sets the tone for the next round.