I teamed up with a student at school to help him launch a new business. The student I teamed up with has been running a legacy company for the past two years, which I am also involved in. The new company we are launching is a spin-off/pivot of the old legacy company he has been working on for the past two years. I have been working on this project now for 5 months helping to build out both the old business which was dismal, and did not have much business in the prior two years, while also working on this new business which is to be launched in September. Here is the break down:
Student I'm teaming up with: - Launched legacy business 2 years ago with little business. About 3 events in the past two years. - Since I joined we have really ramped up and now have 8-12 events lined up for the coming year. - Has invested his full time and money on launching the legacy business and continues to do so for the new pivoted/spin off business as well. -Has great networking skills and contacts. -Asked me to join to be in charge of operations and to be a co founder of the new spinoff business, but not of the old legacy business.
Myself: -Joined 5 months ago -Working on the project part time while I still have my full time job -Am ready to leave full time job once funding is secured -I bring 7 years of ops and technology experience as well as a Babson MBA and a real estate startup company. -I have been working 20-25 hours per week on this project, have taken off work to attend events and meetings and work with my student co-founder on strategic direction and milestones. -I am working on re-launching the existing legacy website and planning and creating the new website. -I have been to all VC meetings and am the only other co-founder.
What is an equitable equity distribution among us? He offered me 10% with "VP of Operations" title, while he gets 60% and keeps 20% for equity of employees and another 10% for VC and Angel funding.
I rebutted saying that I don't think that is fair given the tremendous amount of work ahead since the idea is just an idea and in infancy, sacrificing my 85K salary and other businesses I could launch (opportunity cost). I rebutted with 25% equity and title of COO.
What do you guys think about this situation? I almost feel that this is still too low. I should ask for 35% of the new company... yes/no???