Common partnership terms for hacking w/stranger?
Hi folks, I am struggling to figure out workable partnership terms for a potential collaboration with an acquaintance. Obviously all scenarios are different and there is not 1 solution for everything so here is a quick summary for my scenario:
- There is a semi-working prototype by the other dev (no customers). He has largely moved on from it.
- I want to pick it up now, add some features and take it ahead
- No proof that it will work, it’s largely a test so I want to minimize my burn.
- I want to focus on product/design and he can help on backend(obviously he knows the codebase).
We have talked about an equity + small compensation(I pay him) based partnership but I am not sure how to go about it. Equity immediately makes me think of putting a legal structure in place which seems irrelevant for such an early stage.
I am now wondering if most people start out solo and slowly take help from freelancers on a limited budget whenever necessary. This avoids the whole partner problem as you are the only owner.
If you have comments specifically for my situation, that would be awesome but I am open to hear general approach around this as well.
You can sign with him a promise contract, setting goals, responsibilities, and rewards.
Say he agreed on 30% equity, you can give him that promise bound with certain goals (like launch month, certain features in the product...).
The same contract as a freelancer, but he gets 30% of the company at a certain date when requirements are met. then you can write a new contract revoking the last one.
can-founders-promise-equity-in-company-doesnt-yet-exist