I’m looking for guidance on splitting equity.
I’m a soon to graduate software developer.
The other founder has just graduated and has skills in design and fitness.
They have taken out a personal loan of 40k and they have already incorporated the company.
Currently, they’re the only person in the company.
The thing I really like is that they have done a great job of producing amazing content for the web app.
However, they have hired an outsourced company to develop the software.
The outsourced team is not doing a great job.
They are not very flexible, hard to communicate with, and follow a very waterfall-ish development model (ugh).
However, the contract is signed so, practically, the 40k is eaten up.
They have a further 10k to contribute to other costs.
Being from a less wealthy background, I can only contribute another 2k.
I plan on working 20 hrs per week on it in the Spring and then full time when I graduate.
What do you all think would be a fair split? I’m currently thinking having a near even split would be best with me getting 40-something percent and them getting the remainder. We’d also have a vesting schedule for me.
Let me know if there are any questions!
edit: I’m graduating Spring 2018!
edit2: I want to thank everyone for such meaningful and well thought advice!