|
|
|
|
|
by ryanhuff
5188 days ago
|
|
Already said (far) below in this post, but the work on the part of the technical team to produce an MVP is often front-loaded, which means that the technical person (team) assumes most of the initial execution risk. Equity distribution should recognize the assumed risk. If the technical person does not execute on the MVP, the idea guy mostly out only lost time-to-market. On the other hand, if the technical person delivers, he/she is now "all-in" before the idea person typically contributes meaningful execution-value towards the business. Its probably most fair to view the first "execution" contributors (technical team building MVP) as the first investors in the business, and therefore should be recognized with more favorable terms (equity distribution). If the idea person can create actual execution value in tandem with the MVP, then an initial 50/50 split is fair. |
|