So I have a situation where me and a partner have worked on this startup idea in our spare time. I initially came up with the idea, but we were 50/50 partners from the start. We complement each other well and have known each other for a long time.
We’ve been doing this for about 3 months, and now my partner wants to quit his job and work on the startup full time. On the one hand, I think this is fantastic. On the other, I’m not in a financial situation where that is possible, and probably won’t be until the business is successful – maybe 8 to 12 months from now.
Given this, he wants to renegotiate equity. He says he is assuming a big portion of the risk and labor and doesn’t think it’s fair that he should work on the business full time for a year without any sort of equity compensation.
So I’m not sure what do at this point. I don’t want to give up any of my equity. The idea of being a minority partner in a business that was my initial idea, and I’ve been thinking about for years is super saddening to me.
What should we do? We can’t seem to find any resolution. He’s all gung ho and while I want the business to progress just as much as him, I don’t want to give up any of my equity.
Thoughts? Ideas? Help!