I am a technical cofounder where I have a decent amount of equity but not a ton. We have 3 products. 2 are released and are profitable and the third is in pilot. Overall the company is profitable but growth has been slow. All 3 products are in the same industry.
I have various side projects that I work on the side that are for different industries. These are all in the idea or planning phase but I have fairly detailed business plans, product requirement docs, and mockups I’ve put together over the years.
One of our super large customers wants one of my side projects which means I could potentially start a new company with a 1 million dollar contract out the gate.
What’s the play here? Start a new company? A product in my current company? Subsidiary? Is there a way to get more equity out of this or am I being greedy?
Thanks in advance for the feedback!
I have another compeltet different suggestion from the ones mentioned above, which is something I’ve seen many wealthy people do. Why don’t you create another company, but 1-2 people to actually run it? With a 1M out of the gate, that shouldn’t be a problem.
You can (should, even) also directly co-found this company and find people who are eager to take the project. You wouldn’t have 100% equity of the second of course, but as others said, you can’t stretch yourself too thin. In this scenario you basically act as an investor for another company.