4 ms·

No, you're not the only one. The guy wants 40 basis points for 10-20 hours of work. In real companies, you would have to work 4 years to get that kind of equity

No, you're not the only one. The guy wants 40 basis points for 10-20 hours of work. In real companies, you would have to work 4 years to get that kind of equity. He thinks he's a founder of the internet when he's actually a guy in backwater Texas giving himself way too much credit for modeling a basic CRM schema. To paraphrase a former governer of Texas, he was born on third base and thinks he hit a triple.

SwellJoe 11y ago
"In real companies, you would have to work 4 years to get that kind of equity." When Billy builds a "real company" he can make those kinds of deals with developers. Right now, Billy has nothing like a real company. He has an idea, no ability to execute by himself, and a 50% partner who also can't execute said idea. Startups are not real companies, and equity for working on a startup is very different than equity for working on a real company. A real company also expects to pay market rates for developers. So, by that metric Billy should have been paying these developers $50-$150/hour (depending on market, experience, etc.) for these 20-30 hours worth of work, if they were contractors rather than employees. It sounds like at least some of the team has enough experience to be on the high end of the rate scale, and if they actually delivered some sort of working prototype in that time, they certainly delivered value.
- deleted 11y ago
  [deleted]
lmartel 11y ago
They agreed on 40 basis points in advance. That's a contract. If 40 basis points was "way too much credit" then Billy-the-idea-guy shouldn't have accepted those terms. Also, saying that X% of something is "a lot" independent of stage or size is absolutely inane.
invisible 11y ago
So what implies that Billy has any more stake in the company than Bobby if they each owned 0% of nothing at the start of the weekend?
crazypyro 11y ago
Just to clarify, this didn't happen in Texas.
aerovistae 11y ago
Generally if you're quoting Texas politicians you're already on shaky ground.
- siegecraft 11y ago
  Not when it's Ann Richards
  - zcdziura 11y ago
    Also not when it's a great quote in its own right.

SwellJoe 11y ago

"In real companies, you would have to work 4 years to get that kind of equity." When Billy builds a "real company" he can make those kinds of deals with developers. Right now, Billy has nothing like a real company. He has an idea, no ability to execute by himself, and a 50% partner who also can't execute said idea. Startups are not real companies, and equity for working on a startup is very different than equity for working on a real company. A real company also expects to pay market rates for developers. So, by that metric Billy should have been paying these developers $50-$150/hour (depending on market, experience, etc.) for these 20-30 hours worth of work, if they were contractors rather than employees. It sounds like at least some of the team has enough experience to be on the high end of the rate scale, and if they actually delivered some sort of working prototype in that time, they certainly delivered value.

deleted 11y ago
[deleted]

lmartel 11y ago

They agreed on 40 basis points in advance. That's a contract. If 40 basis points was "way too much credit" then Billy-the-idea-guy shouldn't have accepted those terms. Also, saying that X% of something is "a lot" independent of stage or size is absolutely inane.

invisible 11y ago

So what implies that Billy has any more stake in the company than Bobby if they each owned 0% of nothing at the start of the weekend?

crazypyro 11y ago

Just to clarify, this didn't happen in Texas.

aerovistae 11y ago

Generally if you're quoting Texas politicians you're already on shaky ground.

siegecraft 11y ago
Not when it's Ann Richards
- zcdziura 11y ago
  Also not when it's a great quote in its own right.