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!

If this is your only developer, you should be open to giving away some equity to him. It doesn't have to be more than 5%, and could be considerably less.

Much of this depends on the specifics of your situation: what does your company do, what is your current revenue and burn rate, what are your goals for the company, etc.

I have been through this myself in many scenarios (boot strap, post-series A fundraise, doing-it-myself, and on and on). I've also advised other companies going through these questions. There is no simple answer across the board, it all depends on your situation.

Let me know if you'd like to chat more.


Answered 5 years ago

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