I have recently been approached by a person, who is both an investor and the project idea originator. We are talking about a tech start up, where I am the software developer, project manager, and everything else, and the other guy has some money to invest and near zero technical knowledge. In his own words, he won't be able to help much, except for his money and connections in high places (people who own high traffic sites and will be able to help promote us), so, basically, 97% of all work will be on me. I like the idea, see great potential, and am very interested in working on the project. The amount of money is not enough to quit my job and work full time at the new company, but enough to pay for contractors for tasks where my skills are lacking (graphic design, etc.), and then promote the product. I estimate 60-100K of capital available for investment on his part over two-year period (not a lump sum). It'll take me about 6-8 months to architect and develop the first version and launch it. Not sure what other information to offer, so ask away.
I need suggestions on how to structure this partnership. I don't have any money to invest. So this can't be a partnership where each partner pays his share of money into the pot base on ownership ratios. In any case, with me handling almost everything, what could the ratios be? If it's his idea and his money, how much of the company should he own? Or I can think of him as an angel investor, investing money in a start up for (what?) percent ownership. Is it possible for me to get paid at least something for my work? I realize this will affect the percentages.
I appreciate any ideas and suggestions. Thank you in advance!