I'm looking for opinions on what you would expect the equity distribution to be in this scenario:
Person #1: Came up with the idea, left his job 1 year ago & went unpaid for 6 months, filed patent. Raised $1M in angel investments before hiring anyone (investors own 1/3 of company). Non-technical, sales-oriented, has good industry connections which will be important in this business. Spokesman for the company.
Person #2: CTO & principal software developer, excellent domain knowledge. Comes highly recommended. Responsible for hiring new developers, visiting clients. Was brought in 3 months ago, created proof-of-concept prototype. Hired with a salary which is somewhat under market (say 25-50k under). Invested cash in the company (say 10-30k). Will be major contributor to coding on version 1.0.
Person #3: Principal developer, good domain knowledge, also highly recommended. Worked on trial contract basis for 2 months, just recently hired full-time. Hired with a salary which is somewhat under market (say 20-30k under). Will be major contributor to coding on version 1.0.
It's likely that there will be a few (2-3?) more technical hires in the first year to help create version 1.0 and launch the product. Based on angel investment & equity stake, company value is estimated at $3-4M.
All opinions welcome, I am interested in hearing honest, unbiased opinions. Everyone involved has expressed an interest in doing what is fair.