Here is the situation. I'm working with two other folk on our startup and we are now planning to incorporate. We're trying to figure out how to allocate founder equity between ourselves.
So far, we have been keeping track of hours spent and the total is as follows:
Person A: 800hrs
Person B: 500hrs
Person C: 300hrs
No one has invested any money so far.
A is working fulltime on the startup and B & C are part time, but promise to become fulltime in Dec 2010 (because of commitments to their existing job)
Our current thinking is that we want all three founders to have the same equity ( B & C will buy hours @ $50/hr) to equal A's 800 hrs.
The issue is how do we vest the founder stock going forward since B & C are not fulltime until Dec and may end up never going fulltime. Similarly A is fulltime now, but may have to go part time if no revenue comes in soon?
We want to incorporate and do the IP assignment asap which is why we are trying to figure out the equity split for the incorporation.
In general, how do you vest founder stock if the founders are not fulltime, but you can only pay them in equity?