If the company wanted just someone to code a prototype they could probably get a couple thousand dollars together and hire a contractor to do it. As long as the

If the company wanted just someone to code a prototype they could probably get a couple thousand dollars together and hire a contractor to do it. As long as the success of the company is based on the execution of the software you have to hire top notch developers and pay them accordingly. The idea itself is not worth that much, most of the time it's about the execution. And if these guys could raise some money without any code then they should go ahead and do so and they pay market salary. Until they can raise enough money to pay close to market rates they need to pony up equity to developers.