I'm currently involved in a software start up with two other people.
Abe started the company a couple years ago. He outsourced development for $100k. He's worked a lot of hours, but on a part time basis. Abe has 70% equity.
Barry joined about a year and a half ago. He has domain knowledge and a nationwide network which will be helpful when it comes to marketing. Barry hasn't done much though and still has his day job. Barry will likely not have a full-time role with the company. Barry has 20% equity.
I joined about a year ago. I have domain knowledge and a technical background. I was brought on to assist Abe with day-to-day running of the company, marketing, and assist with beta testing and roll out. Intention when I was brought on was for me to be full time. Since being brought on, I have been winding down my previous business and will be full time in January 2013. I have 10%.
The software is currently being actively developed, although most is in alpha testing. We have market validation, but no funding or customers lined up. No one is being paid a salary.
A few months ago, Abe told us he was terminally ill and he expects to be dead before the end of the year. I have since taken over development duties from him. I also have taken the lead on running investor pitches.
Going forward, I will be the only full-time worker, soley responsible for beta testing the software and rolling it out to production. Barry will help with marketing, but I will be responsible for crafting and executing the marketing plan. In essence, this is going to be a one man show with assists from Barry.
We are trying to bootstrap as far as we can, but expect to need to raise some money ($200-400k) to expand our reach.
I have told Abe and Barry that I think my increased responsibility warrants a reexamination of our equity split, but they are balking.
Am I right to want a larger share? How much more should I be asking for? Should I just walk?
Thanks for any advice! I'm out to sea and just want to ensure I'm being treated fairly.