Ask HN: Working part time for equity?

[throwaway101]

A friend of mine who is founding a company has asked me to work part time on his startup with him. He's currently working on it part-time as well.

I'm wondering how much equity I should be asking for in exchange for ~10 hours a week? Does anyone have any experience on not being a co-founder, but being the first person to assist in exchange for equity?

[healthyhippo]

All sorts of problems can crop up if you don't resolve the equity situation up front. Its good you're trying to resolve it as soon as possible.

Depending on how much thought leadership he's provided and how much direction he's given you, it should range from 50/50 in the very best case for you to 80/20 in the worst case (assuming you if you're the #2). That split also depends on whether he is paying you or not to do the work, and whether you really want to loop in with him long-term on the startup.

Are you guys incorporated? Regardless, make sure that the terms are in paper.

When making equity decisions with my co-founder, I found these posts pretty valuable: http://startuplawyer.com/incorporation/how-to-split-the-star... http://startuplawyer.com/startup-issues/keep-your-startup-co...

Hope that helps.

[throwaway101]

Yep, it's incorporated. It's his idea, and he's driving everything, so I have no qualms with him having the lion's share of stock. I have plenty of my own useful experience I'm bringing to the table of course, and will be working in a mainly product, slightly technical role.

This isn't his first company (hence why I'm happy to follow along and learn from his experience), but the amount of equity offered seems very low. 0.013% of all outstanding shares vesting per month.

Thanks for the links.

[healthyhippo]

Agreed, thats a miniscule share of the equity. i know people who have joined companies with 20+ employees and gotten that much or more