I and a friend are looking at a start up for a web product. He has come up with an idea and was looking at assembling a team in India for developing a prototype for the product. He is based in Europe and is doing a full time job. Currently we are at the concept stage & I am helping him design the product and putting up a team in India.
We want to decide on a partnership model between both of us before going ahead with registering the company. He has offered me a partnership in the ratio proportionate to the amount of seed investment put in by each of us, and proposed that he will invest a higher amount. However with all other qualifications being more or less similar, I think that I am better positioned to manage the operations for two reasons - I am based in India and I am currently not in a full time job. So I have asked for an additional equity of at least 10% so that we both end up having 50:50 stakes.
I feel that an equal partnership will keep both people equally motivated to get it on to a stage wherein it can be converted into a full time engagement for both of us.
Alternately I am ok for a 50-50 partnership with I. additional equity of 5% if I take up a full time job II. additional equity of 15% if I do not take up a full time job
Please advise if my argument is reasonable. Does it work better for the business if one partner has majority stakes than both partners having equal stakes?