This is my first startup.
I was working with a friend on his startup. He was going to offer me 20% of the company and we worked on it for 4 months. The idea was good but we ran out of money before we could shop it around for seed. He never issued the shares and he did dissolve the company - so they would not have been worth anything anyway.
I told him I had to go work on something else to pay for my wages so we parted as friends.
A couple of months went by and I came up with my own idea. A new idea in a different sector. I found a team in another part of the country and worked on the idea. They were also working on their startup and we thought we could merge the companies. After a few months of work. Spreadsheet, multiple slide decks ad an alpha we presented to seed investors with no luck.
Since time was running out on my own funds I decided to take my idea fully flushed out back to my friend. We quickly reformed our relationship (we get along great) and he brought in a retired CEO and COO to give a seed investment and be on our board.
We are days away from coming to terms and my friend ask me if he could be Co-founder. Here are my questions:
Since I came up with the idea solely on my own and he did not. Should my title be Founder and his CO-Founder.
Should he be a co-founder at all? I've put 50k of my time in and my dad put in another 50k. My friend has put in no money but he is bringing in his his friends as seed round (50k) and they are great advisers so far. They also have the connections to larger rounds 1-20 million.
If I do say yes and give him a higher stake in the company - say 5-10 percent. As opposed to a 1-3 percent as an employee and EVP / Chief business development title.
I just wondering if I should - he says he wants the title more than the equity. It would also be good to return the favor.