3 ms·
> I’ve seen proposals asking for six figures in dev fees upfront plus upwards of 40% in equity. And I’ve seen founders actually take those deals out of desperat
by spoonjim 4y ago
> I’ve seen proposals asking for six figures in dev fees upfront plus upwards of 40% in equity. And I’ve seen founders actually take those deals out of desperation to play the startup game. They often target first time, non-technical founders who have extensive domain expertise and networks, although they also go after younger talent.
Is this a bad thing? These founders bring value to the table but have no ability to build product, or to identify a technical cofounder who can. Seems like 60% is reasonable for them to own to get a team that can ship.
- tchock23 4y agoThe issue isn’t taking equity. In theory, taking equity aligns incentives between the agency and founder for the long term. The issue is with how these firms are marketing themselves to founders. It’s misleading and clouds the (already cloudy) entrepreneurial support space. I wish I could post examples but that would be inappropriate.