I am a moderately successful small business owner who has had an idea for a B2B startup tearing at my soul for four years. I have tried to discredit it, forget about it, and even make myself believe I am not good enough to execute it, but I can’t shake it. My small business is at a point where I can start spending more time and resources targeting larger markets while still maintaining growth and revenue in my small business. I have given up on the idea of outsourcing an MVP and have decided to find a local co-founder to launch this business with.
The idea is basically a hybrid lead generation/consulting saas platform targeting small to medium businesses and freelancers. Some competitors in the space are thumbtack, angieslist, home advisor, freelance sites like upwork, and social media ad platforms. As a small business owner close to the problem these businesses “solve”, I believe they all over charge and fall way short of the value they could be providing. Without disclosing anymore than that at this time, would you hypothetically accept a deal like this to be CTO?
I would get 50% equity for 100k in seed funding and 30% equity vested evenly over 3 years with 1 year cliff as co founder/CEO. I would take on all responsibilities other than Tech including marketing, sales, legal, and investor relations.
Developer would be paid by me (separate from seed funding) an agreed upon amount to develop an MVP as well as get 20% equity vested over 3 years with a 1 year cliff back loaded at 5%, 5%, 10% to be co founder/CTO. Responsibilities are everything tech related including database architecture, programming, scaling, bug fixes, optimization, API integrations, load testing, backups, push notifications, updates, documentation, outsourcing, etc.
After the MVP is developed and launched, I would only expect a 10-15 hour per week commitment from the CTO initially until traction or outside investment is achieved and the company can pay them a salary. My initial time commitment to the project would be 20-30 hours per week and the 100k seed funding would be used for branding, operations, and marketing only.