I've been developing a SaaS project for about 4 months now. About two weeks ago, I invited a friend to join the project to work on building relationships with vc's, drafting documentation, a little marketing, etc.
I've developed the majority of the code/concepts, but have also invested 3-4k in some backend restructuring. My co-founder also wanted to contribute and has invested around 1.5k.
He's been moderately successful at landing interviews with VC's but continues to work hard, be enthusiastic, pose intelligent ideas, etc.
We're planning on meeting with VC's next week and they will likely ask about ownership stakes.
We're not making any money off the project yet so ownership means equity.
What's a fair % of equity for his role?
Thank you in advance!
If you don't get VC money what is your company worth? Chance of survival? Growth potential?
If you do get VC money what is your company worth? Chance of survival? Growth potential?
Those types of questions are very hard to answer without a great deal more information. All I can say as the marketing/biz dev guy is that - a fair % of equity sometimes is not proportionate to how much you bust your ass, but what you bring to the table. If the business is completely different with VC money and he brings a lot to the table a significant equity stake isn't unreasonable.
A high tide floats all boats.
First, read this thoroughly: Forming a new software startup, how do I allocate ownership fairly? After that, read through the comments - lots of good stuff there.
In general, were I in your shoes, I would split the company 50/50 with him. 4 months is not much time (in the grand scheme of things) and he's clearly either very resourceful or has a lot of connections - either way, he sounds worth keeping happy.