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You currently have no company. You have a product. Customers don't care about kLOC, they care about features, stability, and ease of use. You need to have a 50
by debacle 2y ago
You currently have no company. You have a product. Customers don't care about kLOC, they care about features, stability, and ease of use.
You need to have a 50-50 equity stake with the person you bring on. The product you build, if they think it is saleable, should be part of a payback setup or equity share, or should be licensed to a new entity you create.
My suggestion would be a 1/3rd 2/3rd rev split until you make 1.5mm lifetime rev, and then after that 50/50. You will be paid back for the time you have put in, and you will have a partner who is on equal footing to you. If you need to be 51/49, so be it. If you need to maintain the license to the code, figure that piece out, but you will be best served with a 50/50 split in the long run.
- TZubiri 2y agoTalking out his ass this guy: "You don't have a company" We literally do not know if he is incorporated, if there has been any sales. "You should be 50/50" Bold claim. First of all, making any blank suggestions for equity without any info is already questionable. But also giving half equity to a late contributor is a blunder.
- x0x0 2y ago> have no paying users
- dandandan 2y agoThey’re not a “late contributor” if what they bring to the table is nonexistent today.
- meiraleal 2y agoIt is a MVP of 70-80k lines of well written code. If this is true and the app is good, he is ahead of 90% of even the projects accepted by YC which by the last ones I have see the github, it is nothing impressive at all, just React/NextJS.
- cpersona 2y agoI assume that YC is looking for people who have validated the market and have established that a market exists before sinking time and effort on the order of years into a product with no customers. Code is relatively easy against the task of meeting with customers and finding the right fit for your product. I say this as a coder who much more prefers the scratching of a technical itch to the thought of finding a customer who will pay.
- ldjkfkdsjnv 2y agoCompletely disagree. Six months of sales work could get the company onto a track where the sales guy isnt as needed. So you give away 50% just to get started on sales. He should hire a consultant to teach him how to go to market.