Loading...
Answers
MenuHow much equity should you give a technical co-founder if you already have the idea, but you need them to help build the product?
I know I'm going tp need a coder on the team, but I don't have the capital to pay for one, so I'm trying to find out how much equity I should give the coder
Answers
Hi
This is a good and common question.
The answer depends on numerous factors. Just to name a few: how complicated the project is, how talented the person is, do you want them solely as a service provider (who then leaves at the end of the project) or as a co-founder long term?
Additionally, it depends on what the Coder wants (and not only what you want).
1. I suggest that you start by trying to "sell the dream" of your idea to potential coders and then once they show interest, ask them how many shares they want. Then, based on the above factors decide how many shares you're willing to give.
2. Whatever the amount is, be sure to:
a. Allocate the shares/right to shares gradually (through vesting) and not all at once.
b. Get a waiver regarding the IP rights and an NDA for confidentiality.
c. Get copies of the progress as the coder advances.
p.s.: if the project is interesting enough *you can send me a pitch/investors deck), I know a programming company that will do the programming (and provide support) for you - for free - in exchange for shares. Your only costs will be the legal costs for drafting the agreements via their lawyer.
I've successfully helped over 300 entrepreneurs, startups and businesses, and I would be happy to help you. After scheduling a call, please send me some background information so that I can prepare in advance - thus giving you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/assafben-david
Good luck
Here is the bad news. If your contribution is the idea alone, you are unlikely to find a developer to do it for equity alone. If you have some kind of unfair advantage, it would be different. If you are going to do non tech roles like sales, fund raising etc.. It would be different. Also if you need them just to create the initial product or be a tech founder, it would be different.
If you pay a minimal amount for the development, the amount of equity needed would be reduced.
This may be an unpopular opinion, but I would take a second look at what your limitations on capital actually are. Software development has this reputation of being extremely expensive, but my (limited) experience has shown that you can hire developers at very low costs if you are willing to do a few things.
1. You have to be willing to learn enough about coding to not be taken advantage of and to be able to communicate effectively with a developer. You want to do this anyways so that you can really know your product.
2. You have to be willing to look into the global market for developers. You might be surprised at the low cost you can find by exploring options in other countries.
3. You have to be flexible. The first developer I worked with was great....at least for the first 80% of the software. After that, I had to renegotiate how much he would be paid (ended up paying only 50%) and move on to a different developer to finish the software. This approach only worked because I understood the software and existing code well enough to forecast how much the completion would cost.
Feel free to give me a call. We can go over the financials and your background. You probably have more options than simply giving equity away.
Related Questions
-
Does Wix.com support an API from Booking.com or other API for B2B Travel Agency?
Yes Wix supports a mulitude of APIs to used for various fetch calls for your web pages. If you already have to API's in mind you can venture off within you WIX code to integrate within your application's processes. There shouldn't be any complications getting this done. Please see the link below for more information https://www.wix.com/code/home/apiAB
-
How do I run a successful closed beta for my web application that is almost done with development?
Create an ideal customer profile. Create some questions that will allow to you survey a potential tester to determine if they fit your profile. Design simple landing page with very clear value proposition that speaks to your ideal customer. Ask for a minimum of information up-front (email), but ask for more info after they commit by submitting the first piece of info. (KISSmetrics does a good job of this on their current website trial signup). Use the their answers to these profiling questions to put the applicants into buckets. Let in the most ideal bucket first, or split them into groups if they're big enough. Try and measure engagement the best you can. Measure qualitative and quantitative data. Schedule calls with your beta testers to find out more, especially with the ones who's user behavior seemed to indicate that they didn't get value from your product. Find out why. Make sure they are indeed your ideal customer. Pick up the phone and get to know your customers inside and out. Meet them in person if possible. Incorporate their feedback quickly and get more feedback. Rinse repeat.DH
-
What learning path do I have to take to become a "full-stack" web developer?
If I was just starting out, I'd consider learning Meteor (https://www.meteor.com/). It's just entered version 1.0 and after working with it for a little less than a year I do have some issues with it but it still makes for a very solid framework that gets you up and running very fast. You would only need to learn Javascript, and you can slowly work your way towards nodejs from there (which Meteor is based on) if you want to, or you could get the basics down and focus on learning design if you prefer.KD
-
How do you take an app idea and turn it into an app? Who will help make the app? How do you connect it through social media? How much does it cost?
Having gone through this multiple times either in new startups or for side projects, here is how I would approach turning your idea into an app. 1. Defining the Minimum Viable Product Your first goal with any new idea should be about proving the idea and finding a market that wants the app you want to build. Achieving that quickly is probably one of the most important thing. To achieve that, you will need to write the specifications that will constitute your MVP. The MVP is basically the simplest expression of your idea to prove it. This step should not cost you much as you can do this on your own. 2. Design the app Before starting any development work, I would suggest you work with a good UX/UI designer to create wireframes and mockups of the app based on the specifications you came up with in step 1. You can find good designers in meetups & hackathons or on website like Dribbble or 99designs. If you want to reduce your costs, you can give shares in the project to the designer. Otherwise, it really depend on the size of the MVP but I would say it will probably cost between $5K-$10K. 3. Develop the app Once you have the specifications and the design of the app, you now need to find a good developer that will build it. Again, you can find good developers in meetups & hackathons or on sites like Github. If you want to reduce your costs, you can give shares in the project to the developer. Otherwise, it really depend on the size of the MVP but I would say it will probably cost between $10K-$25K. For this part however, I would recommend the developer becomes part of the project as his engagement will most likely be higher. 4. Test the app This step is not only about making sure the app is bug free, it's also making sure the app does what was intended in the specifications. To test the app, you can use platforms like BrowserStack or SauceLabs which gives you access to multiple devices/browsers. You can do this step on your own so the cost will be for the subscription to the test platform which would be around $100/month. Hope this helps and good luck with your project.VL
-
How do you manage a developer who's slow, especially when you have a small budget and you don't feel like you'll get things done in time?
Usually Programmers are only slow when they don't know how to solve a particular problem. So they will spend a lot of time researching and a lot of trial & errors to solve a problem. It is important that before you engage a programmer on a project, you break down the entire project into simple, easy to understand modules. Let him give you an estimate of how many hours he will require to complete each of the modules. Example: a typical site will have a login module, registration, My account, profile etc. So let him estimate how much he will require to do the login. You can go even detail here. (e.g. how much extra time if you were to implement Facebook/Twitter Login?). Once he start developing, track his progress closely and make sure he is following his given timeline. If he goes over his budgeted time on a module, talk with him and see what went wrong. It is often seen that they may be wasting their time on something very insignificant that you may have asked him to implement, but you can totally go by without it too. So by understanding what is taking longer time, you will be able to prioritise things better. You definitely need some tools to get this done. Google Spreadsheet or Excel works just fine. But if you don't mind spending a few bucks there are many agile project management tools that you might look into. Here is a list, google them all and sign up for trials: * AgileZen * Agile Bench * Assembla * AssiTrack * Blossom * Basecamp * Breeze * DoneDone * Eidos * Fogbugz * GreenHopper * Jugggla * Kanbanpad * Pivotal Tracker Or the reason why he is slow can be purely non-technical. Sometime your developer may don't share the same level of enthusiasm as you about the idea that you are working on. They often don't often see the "bigger picture" (since you don't share everything with them explicitly). If you can somehow get them excited about what he is a part of, it will work like a drug :) He will work day and night without questioning you. But you need to work equally as hard as him. The moment he sees that you are the boss and he is just the guy doing work for you -- his mentality will shift from being part of something to being the low paid developer. Ultimately its all about motivation and making him a part of your venture. After all he deserves it, if he is really playing a crucial role in the entire development.SK
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.