[jeffsilverman]

I had a similar situation in my startup. Take 50% and continue working on it nights and weekends. Or sell yourcode for $20k or 5% of the company for building the first product.

Too many people here take her request as a personal offense. Its not. It's a business negotiation and she is "anchoring". Now you need to counter offer.

Goodluck.

Be prepared to walk away with the product and bury it.