How much equity co-founder in a CTO position (for an existing StartUp) should get


1

I am wondering how much equity (in percentage) should I demand for a co-founder CTO position in a start-up which opened 7 months ago?

Here are some details on the start-up:
= The main founder is the CEO and the brain behind the idea.
- There is already R&D director which works for options.
- They have a working prototype.
- They made contact with VC although the VC asked for another impressive co-founder to invest (I have the proper experience to be that co-founder)
- Currently there are some potential customers although no deal has been signed yet.

I have been asked to say how much equity I want to join.

Appreciate your opinion.

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asked Oct 9 '13 at 22:20
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Uri
106 points

1 Answer


1

This is very vague. It depends on many parameters that we don't know such as:

  • your expected workload (especially compared to the other cofounders)
  • your role is only "to be the third that the investor wants to see" or you bring something more to the company?
  • how specific your contribution is - could they find easily someone else than you?
  • would it be your main source of revenues or just a side project?
  • ...

Answer these questions for you and for the two other co-founders and make the comparison. In itself it's easy: the distribution of the equity should correspond to the distribution of contributions (work, cash, skills, knowledge, cash, potential customers, cotacts, opportunities,...) of each of co-founders.
answered Oct 9 '13 at 22:44
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Data Smarter
1,274 points
  • My contribution is in building similar products and managing such developments. I also bring experience in business dev. and marketing. Can you recommend on the amount of equity? – Uri 7 years ago
  • There are more questions: what is the equity of the main founder? And the one of the R&D director? Will you also receive some salary? **If there is no salary and you estimate that your job will be as important as the one of the R&D director, then ask for the same equity as he has** (I assume that the main founder has a bigger equity already now). – Data Smarter 7 years ago

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