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.
If you are thinking of 50/50, just be very well aware of the risks. I’ve seen too many grown men (and women) cry because they are stuck in a deadlock.
51/49 is usually a better idea.