Questions

Bringing my developer in house full time will provide a small short term lift in revenue with increasing value as the company grows and scales to multiple web properties. He isn't interested in salary as much as equity. My 50/50 business partner and I on the other hand are not interested in giving away equity. We are open to profit sharing, or any other creative solution that will continue to motivate and incentivize him for the long term without having to give up a % of our company. Any feedback greatly helps - thanks!

As a venture capatalist I believe the key people in any start up should be incentived with equity. As someone mentioned below the equity in itself has no value as 100% of nothing is nothing. If he is good enough he will add more value to you and your partner than the equity you provide. Also if the equity is sufficient, which you should cliff vest over at least a 4 year period, he will be fully incentivized to stay and help build a sustainable profitable asset of value.


Answered 5 years ago

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