I contracted the development of a prototype for my web app. The developing company liked the idea, so rather than paying them cash in full, they agreed to a reduced price in exchange for 20% of the equity. Additionally, a friend bought another 10% of the equity to help pay the developing company.
So now it's myself with 70%, dev company with 20%, and my friend with 10%.
But I met with a cofounder interested in partnering. The dev company and friend aren't really going to help with coding/etc at this point and simply have a percentage of the equity.
How would my new cofounder and I split the equity? I'd think we both would have an equal amount, but this would mean that the company and my other friend would have their percentages diluted, correct?
