Say one person comes up with the idea for a startup, and spends a significant amount of time over 2 years developing the business plan. That person then asks others to join the startup as co-founders to help build the startup.
When allocating equity to each co-founder, how much equity is that existing business plan worth?
The person who wrote the business plan is the startup's CEO.
The business revolves around a website marketplace.
The business plan includes:
- multiple lucrative sources of revenue
- a basic plan for user acquisition
- identification of additional roles that will need to be filled
- financial projections
- detailed, yet incomplete, explanation of the website's functionality
- some validated learning (as Jesper referred to)
The other co-founders are the CTO, the front-end designer and coder, and the artist.