My software startup will be launching in the next month or so. Thus far, I've been self funding and have 100% of the equity. However, I'm thinking about giving my main developer/project some skin in the game - in some way/shape/form. A big part of this is to alleviate dev costs for now and after the launch. Also to give him a more vested interest in the companies success for the upcoming year. He's been a valuable asset and is interested in talking through a potential agreement. Any advice for a possible type of agreement for the next year or so we could create?
I would hold on to all your equity as long as you can. If you will be launching soon then you will see what the adoption in either beta or prod will be and this will affect your valuation.
Skin in the game for your dev is great but do they want skin in the game or do they just want a salary?
As a owner you cannot be thinking you are going to get paid anytime soon as every dollar you get will go right back into the business.
Answered 10 years ago
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