This is an update to a question I posted a few weeks ago. Help would be GREATLY appreciated.
I'm a co-founder of a new startup with two other partners. We are just hammering out terms (equity share, vesting, etc) and are aiming to be signing an operating agreement and forming a C corp very very soon. I'm a designer and they are a developer and biz dev guy respectively. We've been working hard for the last few months to rollout a private beta version in the next month.
My partners are both ready to make this their full-time work, despite there being no funding yet. I, on the other hand, have very significant work commitments and am not ready to work on the startup in a full-time capacity. In other words, I'm hedging. I'll be designing the project and doing all front-end development for the foreseeable future, but will probably only be able to offer between 10-20 hours per week on the project. They will be doing up to 80 hours a week.
So, here's the question: considering I am a founding member, have been heavily involved in the conception and will be functioning (for the time-being) as a designer on the project - what would be an appropriate share of the total equity?? (with the 2 other partners full-time and holding equal equity) Are we talking 5% or 25%?
They've proposed I have 4% (vesting over 4 years) while they will hold 40% each (vesting over 4 years). No cliff. The remaining 14% would be an option pool for future employees.
This seems low to me considering I will still be putting in 40-50 hours a month and have already been very instrumental in designing a first iteration of the product and have been heavily involved in its conception.