How should I split equity?
I was approached by a friend to who had an idea for an app. I told him I would build the app. The App is almost done and we plan to go to market on mid May. He claims he already spent 20k on the following: - Wireframe Designs - Branding and Logo creation - Customer Research study (user testing) - Blog and content creation - Landing page creation - Marketing Campaigns (google ads, facebook, instagram, etc) - Hosting - Legal costs (trademark patent, incorporation, minute book, etc And now is offering me 30% equity in a vesting schedule of 3 years with a 6 months cliff. I believe a fair split is where I have at least 50% of the company. Is he offer fair since I'm the one actually building the whole app? What is your opinion on this situation? Other notes: - He has incorporated already and would be issuing new shares to me - He doesn't have access to the source code 4 comments on Hacker News.
I was approached by a friend to who had an idea for an app. I told him I would build the app. The App is almost done and we plan to go to market on mid May. He claims he already spent 20k on the following: - Wireframe Designs - Branding and Logo creation - Customer Research study (user testing) - Blog and content creation - Landing page creation - Marketing Campaigns (google ads, facebook, instagram, etc) - Hosting - Legal costs (trademark patent, incorporation, minute book, etc And now is offering me 30% equity in a vesting schedule of 3 years with a 6 months cliff. I believe a fair split is where I have at least 50% of the company. Is he offer fair since I'm the one actually building the whole app? What is your opinion on this situation? Other notes: - He has incorporated already and would be issuing new shares to me - He doesn't have access to the source code
I was approached by a friend to who had an idea for an app. I told him I would build the app. The App is almost done and we plan to go to market on mid May. He claims he already spent 20k on the following: - Wireframe Designs - Branding and Logo creation - Customer Research study (user testing) - Blog and content creation - Landing page creation - Marketing Campaigns (google ads, facebook, instagram, etc) - Hosting - Legal costs (trademark patent, incorporation, minute book, etc And now is offering me 30% equity in a vesting schedule of 3 years with a 6 months cliff. I believe a fair split is where I have at least 50% of the company. Is he offer fair since I'm the one actually building the whole app? What is your opinion on this situation? Other notes: - He has incorporated already and would be issuing new shares to me - He doesn't have access to the source code 4 comments on Hacker News.
I was approached by a friend to who had an idea for an app. I told him I would build the app. The App is almost done and we plan to go to market on mid May. He claims he already spent 20k on the following: - Wireframe Designs - Branding and Logo creation - Customer Research study (user testing) - Blog and content creation - Landing page creation - Marketing Campaigns (google ads, facebook, instagram, etc) - Hosting - Legal costs (trademark patent, incorporation, minute book, etc And now is offering me 30% equity in a vesting schedule of 3 years with a 6 months cliff. I believe a fair split is where I have at least 50% of the company. Is he offer fair since I'm the one actually building the whole app? What is your opinion on this situation? Other notes: - He has incorporated already and would be issuing new shares to me - He doesn't have access to the source code
Hacker News story: How should I split equity?
![Hacker News story: How should I split equity?]()
Reviewed by Tha Kur
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March 17, 2020
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