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How can I avoid being replaced as a developer once we get investment?
I met my cofounder at a startup event two weeks ago and have been working with him on his idea since then. We are trying to build a minimal version of the product, get some traction and then look for investment.
I'm a relatively junior developer while my non-tech partner has 10+ years of experience. My worry is that, once we get investment, he might decide to hire someone to rebuild the site from scratch and dump me. With his experience and connections he would probably be able to find a more experienced developer once there's some external validation of the idea.
How can I mitigate this risk?
I believe I'm capable of building the product, but I'm uncomfortable merely hoping that my partner will agree with that.
How can I bring this worry up without accusing him of using me to get investment for his idea?
- Peroni 14y agoWell you say he's a cofounder suggesting you own an equal stake in the company. Is the company registered and official?
- throwawayq 14y agoThe company isn't registered at the moment. If we would agree to share equity later on, couldn't he just start a new company if he doesn't use any of my IP?
- charliepark 14y agoDTR conversations can be awkward, but you'll need to have them long before you seek funding. VCs won't want to even talk to you if you haven't sorted out who owns what within the company. If he'd be pitching investors without you, it's likely he sees you as a contractor already. If so, that's fine, but you should be getting some sort of compensation for it. If he does see you as a partner in this, it's as beneficial to him to iron out all the details before you move forward as it is for you. You don't need to make it antagonistic — start with an e-mail: "Before we get further in the development cycle, I want to make sure we have a clear understanding of what our roles are, what expectations we have of ourselves and each other, what investment of time and money we'll put into this (and where it's coming from), what equity we'll have in this business, and what our vision is for the next six to twelve months." Then, have a conversation — away from computers, but with a pen and paper — and make sure you're seeing eye to eye. Write up a "memorandum of understanding," print two copies, and both sign both copies. (Keep your copy somewhere safe. Also, scan it, and e-mail it as an attachment to him with a note: "Just a backup copy, in case both our houses burn down.") You'll probably need to revise it down the road. That's fine. But before you get too far into it, get it sorted out. Better for it to fall apart now than after you've sunk months of work into it.
- throwawayq 14y agoThanks for your answer. You're right, we need to discuss this openly before I put much more work into it. We aren't looking for investment yet, but I'm assuming he's talking to people who might be interested. I think formalizing our agreement in writing will make me a lot more comfortable with the relationship.
- gruseom 14y agoI would express that fear simply and directly to him in person. You're embarking on a journey together. How far are you likely to get without mutual trust?