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No, no, no, no. This is exactly the kind of thing a business guy would use to make what should be an exercise in research and negotiation into seeming like it's
by lionhearted 16y ago
No, no, no, no. This is exactly the kind of thing a business guy would use to make what should be an exercise in research and negotiation into seeming like it's "scientific". Bullshit. Research and negotiate for what you're worth. This is the biggest mistake I see technical people make with businesspeople - ask for more, don't be meek and buy the business-guy "this is how it is" BS with unnecessary totally subjective fancy charts. And I say this all as a business guy, by the way.
Edit: Here's how I'd reply: "That's a great chart, it makes total sense to me, I can see how you'd come up with the 20% number... just from the research I've done on how much exits are usually worth, I'd be looking for something around 30% to come onboard, and I'd expect to work my ass off to be worth that. I'm making pretty good salary right now, but I am really excited about this project - how can we make this work? What would you expect out of me for me to be worth 30% vesting over XYZ timeline?"
In other words, don't argue, indicate you've done some research, don't trip the other guy's ego defense mechanism, state what you want simply without grandstanding, focus on delivering value, and then ask what you'd have to do to be worth that. It'll work. Really, unless they were offering something overly fair to begin with to be cool, a businessperson will respect you more if you negotiate with them a bit. Makes you seem like you've got a spine.
- nathanh 16y ago"This is exactly the kind of thing a business guy would use..." Thanks for your comment. I didn't mean for this to come across that way. I wrote this is because I keep seeing technical cofounders getting the shortchanged on equity, and I want them to know should get more. And I want non-technical cofounders to know that they should expect to give the technical cofounder a larger % equity than they often expect (unless they've really got a lot to offer). Here's a scenario I see a lot: a non-technical cofounder has just received their MBA, they have no startup or industry experience, they have no prototype, they want a "code monkey" like YuriNiyazov says in another comment to build their product for them, they offer them 5% equity with no salary. For some reason, I keep seeing developers take them up on their offer! Under this scenario, I'm saying a developer should get 50% of the company because the non-technical founder is probably ok (maybe not great) and hasn't contributed a lot to the business yet.