How much equity should I give to my new co-founder?

@radiantjedichica In my previous YC application; we were on the top 10% startup as per the email I received.
I infact received 2 emails before being rejected at last.
However back then I only had 5000 users, 0 revenue and a semi functional MVP.
So it’s definitely a VC fundable business as proven my many startups in similar space.
 
@gloria_ Will having a technical cofounder peak vc interest and help closing investment?

I think it's this is the only reason to get one now. Or if they're willing to come in at 10-15%

Otherwise a great tech lead with the business having lesser net margins for a year might still justify the cost in return for the growth unlock and automation, post tech infra has improved.
 
@futantagenda
  1. My startup isn’t a hard core tech like some other startups, it’s an intersection of Tech, Manufacturing and Supply Chain built in to solve a supposedly complex problem or maybe it’s just a unique business mode that seems to be making sense for me atm.
  2. I was playing with the idea of getting in a co founder as been suggested by some well meaning friends.
  3. But given the traction and milestone I’ve achieved with an unbelievably low investment and being mildly profitable to grow the business. I don’t have any idea on how to value the Technical Co-founders future input, since by the time someone join in after 2-3 months, we will have a fully fledged product by then built by our in-house team and will be hitting atleast $60k MRR which btw we already hit once few months before..
  4. I was thinking of maybe 10% - 20% equity split for an experienced talented Tech Cofounder; but again I wasn’t confident enough to throw such proposals owing to the fact that I don’t have a reference point to evaluate.
 
@gloria_ Don't do it for the investors, VCs. There is no hard commitment that they will fund you.

Do it only if you really find insane value and tech cofounder handling 3 devs is also not something very clear to me either.

Does your tech team increase significantly as you grow?

Do you have cash to hire a tech lead, engineering manager? Ambitious and young engineer who wants a management role maybe 3-5yrs exp
 
@futantagenda One of the dev is younger to me and we share a brotherly bond since we’ve known for a long time. But he isn’t interested in becoming a co-founder for the fact that he’s seen me grow the business from early on even before writing the 1st line of code. He is well aware of the stress and hassle associated with being a cofounder and also English not being his native language, I see some challenge of articulating his thoughts when questioned by any native English speakers.. Also he isn’t very keen on being a cofounder, but a possible CTO role and future employee stock options is the only thing pushing him to work for very low salary.. Hence the question of maybe an outside Technical Co-founder might be useful?

Again the industry I am in will eventually require huge investments in the long run and there’s only so many 2nd hand scrap equipments, makeshift units we can build..
Often times we are in a position where we need to buy 2-3 desktops, furnitures and equipments in a given month. And the profit of that month is only enough to address 1 departmental needs, and we end up rationing our growth for that month, while the other depart ends up waiting for 2 months to get their hands on the needed devices..
Our Fulfillment Centre is comically semi manual and faulty coz we can only afford to buy 1 component at one given month and it takes us a year to establish even a remotely efficient system, which we compensate by hiring more people coz they are cheaper on the short run..
And that applies to all the depart and aspect of the business, coz some things are more expensive than others and some infrastructure value is extracted over a period of 5 years while requiring its installation just few months from the start..

We have just enough cash not to die and survive the other day. We hit what we kill.
And for that reason we only hire people when the system breaks and not before, just before the event we only pray that things don’t break soon.
 

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