I've recently joined a startup that started about four years ago with a small initial investment from a university competition. The original founder has put in around $2,500 since then, and I've come on board a year ago to help with development. Initially, I was given 8% equity, while my partner holds 60%. Currently, we both work part-time, and although I've significantly improved the website's functionality, we haven't secured any investments or expanded much yet. My partner is open to increasing my equity, but I'm unsure what amount is fair. What do you think I should ask for?
2 Answers
It sounds like you're making significant contributions, so I'd suggest aiming for a more equitable split. Asking for around 40% could be reasonable since it reflects your role. Consider proposing a split that takes into account your development work and the ongoing commitment. Just ensure to discuss vesting schedules for shares so things stay organized if investors come around later. The goal is to find a balance where both you and your partner feel valued—arguing over minor percentages might not be worth it in the long run.
It’s important to clarify what your current 8% represents—is it shares or options? Also, what type of company is this? If you’re actively coding and managing the tech, pushing for an increase seems justified. You might aim for an increase to around 15% of owned shares, but asking for more might be tricky given your partner’s majority stake. Just keep in mind that if you go for options, they should have a clear exercise period. It sounds like your contribution warrants a bigger stake, especially if you’re both in it for the long haul.
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