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Normally vesting is over a much longer period, e.g. four years, so he is insanely trusting of you. For example, what if you worked for six months got the equity

Normally vesting is over a much longer period, e.g. four years, so he is insanely trusting of you. For example, what if you worked for six months got the equity then just left? Then he might find it difficult to raise funding. At such an early stage, 25% and no salary would usually be considered a co-founder. Of course, there's no legal definition so in actuality it's whatever you agree to. This situation is very common, where a founder didn't really derisk the company as much as he perceived. For being a co-founder, the question becomes to what degree can you accelerate the business. Is funding holding him back and your background/involvement will encourage investment? Is the product what's holding him back, and you will 10x its dev speed? You'd make a logical pitch that with you as co-founder, the company will grow way faster than without. Additionally, I'd do some online equity calculators and present a logical case for a given percentage. I'm also not sure what the strategy is with the seed range. You want to have enough to survive hopefully 2+ years AND propel the business forward. The low end implies maybe you'll pay yourselves minimally. However, you may need another raise very soon since it doesn't help blow up the company -- you'll have to hire/rent office space/marketing/etc.

itsoktocry 2y ago
>At such an early stage, 25% and no salary would usually be considered a co-founder. Of course, there's no legal definition so in actuality it's whatever you agree to. This situation is very common, where a founder didn't really derisk the company as much as he perceived. This is strange Silicon Valley vernacular. In the real world, a "co-founder" is someone who founds the company.
- psyklic 2y ago
  > In the real world, a "co-founder" is someone who founds the company. In the real world too, not all founders are there at the exact moment the company is incorporated. If I incorporate a company, 6 months later have little accomplished, then realize I need skilled people to come all-in for equity -- they're certainly going to be co-founders. In this case we lack the full story, but this company likely would still be considered very early. They're raising a seed round and asking someone who would be critical for growth to risk everything only for equity (presumably). If he wasn't critical, the entrepreneur would likely wait until after funding and hire a founding engineer.

itsoktocry 2y ago

>At such an early stage, 25% and no salary would usually be considered a co-founder. Of course, there's no legal definition so in actuality it's whatever you agree to. This situation is very common, where a founder didn't really derisk the company as much as he perceived. This is strange Silicon Valley vernacular. In the real world, a "co-founder" is someone who founds the company.

psyklic 2y ago
> In the real world, a "co-founder" is someone who founds the company. In the real world too, not all founders are there at the exact moment the company is incorporated. If I incorporate a company, 6 months later have little accomplished, then realize I need skilled people to come all-in for equity -- they're certainly going to be co-founders. In this case we lack the full story, but this company likely would still be considered very early. They're raising a seed round and asking someone who would be critical for growth to risk everything only for equity (presumably). If he wasn't critical, the entrepreneur would likely wait until after funding and hire a founding engineer.