Seeking Input on Equity Split

[laurarose]

Hello, and happy Thanksgiving all. I am seeking advice on equity split with a potential co-founder. I am the founder of a pre-revenue startup, aiming to build a SaaS for engineering industry. I am the domain expert and put in already ~3,000 hours and 8K into the business. But I don’t have technical background the build the software. I connected with a person who seems to be a great fit to build the software. He has 20 years of experience, ex-Amazon, ex-Microsoft. We will both be equity sweating and putting equal effort. He will be in charge of software development, and I will be doing everything else (at least in the beginning). What do you think would be fair equity split? Thank you for your input.

 

[bonin151]

@laurarose Typically people are advised to do a 50-50 split. I would go 50% and I would add stipulations for each co-founder to be able to get equity. For example, someone must work there for 3-years, or hit a certain amount of target deadlines ect. 50% with stipulations you guys agree upon would be one option.

 

[verdanavivian]

@laurarose As a guy who has helped build and exit in 8 tech / marketing startups, I wouln't advise on a 50/50 split. Startups need a clear visionary to set the direction; and that sounds like it's you. Pre revenue and product the company will have little value, so it's not about money. You need to carve out enough equity to keep your partner interested but retain control. I would suggest a max of 30% for the new partner.