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I think it makes sense for everyone who’s active in starting a company to get an equal split of the equity. Starting a company is as much about the work you’re
by danieka 8y ago
I think it makes sense for everyone who’s active in starting a company to get an equal split of the equity. Starting a company is as much about the work you’re going to put in as it is about what you’re bringing to the table. It also makes sense to eliminate any areas for friction, you’ll probably have plenty of friction as it is.
If the idea person isn’t going to be a part of the team I would actually be hesitant to give them any/much equity. But that the depends on the idea. Trivial ideas are a dime a dozen, but some ideas require deep knowledge about specific fields of industry, in such a case the idea is worth more.
Also, what is your relationship with the idea originator? Friendships are worth more than equity.
Anyway, I would probably give no more than 10% for just the idea. If the idea person wants more I would try to get them involved in the company or simply not start the company. There are a ton of great ideas to be had.
By the way, every time I tell someone I’m an app developer they say they have a great idea for an app. I rode with one cab driver the other day who said he had an idea for an app and “it’s like Uber but with one difference, but if I tell you you’ll steal it and become a billionaire”. Sure pal, good luck with that.
Edit: spelling