What percentage can a developer ask for in a startup?

unsignedlong2012-03-10 13:30:34

Startups

unsignedlong, 2012-03-10 13:30:34

Good afternoon. There was such a question.

There is a startup that has just received investments.
There is a developer who liked this startup. The offered salary is lower than he can get in other places (Let's say 70 instead of 100 sr).
What percentage of the company is usually accepted to ask? 0.01-10?
Thanks

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10 answer(s)

Silver_Clash, 2012-03-10
@Silver_Clash

I think it would be quite fair to offer the developer the same conditions as investors, because he invests his time in the project, which will not be compensated by the RFP, because. he expects a higher salary.
If you conditionally received 100 rubles of investment, for 50% of the startup, then apparently 1% costs 2 rubles. It is not difficult to calculate further.
Well, in general, this question is purely individual, as mentioned above. How do you agree.

Puma Thailand, 2012-03-10
@opium

What share can we talk about when the startup has already received investments? There may be some options based on the results of the work and the success of the project, but when it comes to working for a salary, even if it is a miserable 30 thousand less, in my opinion there can be no question of any share.

Zloy1, 2012-03-27
@Zloy1

Is there at least one proger who got a stake in a startup that shot and was eventually satisfied with this idea? Not? Draw your own conclusions.
IMHO, this is a lottery and the chip is not in the share as such, but in confidence in partners.
Ask for an equal share - they will give you as much as they think is fair, don't worry, you won't get too much anyway.

codecity, 2012-03-11
@codecity

Correctly written: habrahabr.ru/qa/17269/#answer_71261
But there is such a slippery moment. What to do in such a situation:
1. The developer will not be able to continue working with you in half a year (let them offer another job 10 times better). For care, he owned a 10% stake, the equivalent of $10,000 (the total cost of the project is $100,000).
2. A year later, the total cost of the project increased by 100% and amounted to $200,000.
In a year, will this developer remain the owner of a 10% stake, already worth $20,000, without doing anything? Or is it necessary to reduce its share to 5% while maintaining the cost of 10 thousand?
By analogy with shares: it can be considered both as an increase in the value of shares and as an increase in the authorized capital (and the printing of new shares). In the first case, the share is unchanged, in the second it decreases.
Here is such a slippery moment to foresee.

grigoryrudko, 2012-03-10
@grigoryrudko

Assess what part of the project is development and proceed from this. Perhaps this is the minimum part of the total amount of work. Well, it is important to motivate a person so that he feels the importance of the cause and his contribution.

Neofant, 2012-03-10
@Neofant

It should be taken into account here that the developer receives a salary for the work. If he gets 70k instead of 100k, it will be wrong if he is offered 50%.
Wash, 10% will be enough. Because, the investor gives money, and he has a risk. The director (that is, the author of the idea, the main person) spends time on org issues and promotion, and he does not receive money for this. He also has a risk. And the developer gets the money, and if the project fails, he will be in the most convenient position.

Alexander, 2012-03-11
@ncix

Are you a developer? Ask for as much as you can, don't be shy. Bargaining is appropriate here.

Sannis, 2012-03-21
@Sannis

Why not just ask for a pay rise?

moderatorh, 2012-03-27
@moderatorh

It all depends on which side of the "barricade" you are! Life has made it possible to be on both sides of the barricade, so:
1. If you are a developer, then your task is to convince the management and get the maximum percentage of the share, ideally more than five, at least 5.5. Moreover, the percentage is not from future profits, but rather to become a minority shareholder, owning, say, 6 percent of the shares of this enterprise, motivating this by the fact that you invest your time and energy in the project without any specific guarantees, that is, it can shoot, or maybe not and it will depend, alas, not only on you ...
2. If you are the project manager or one of the main shareholders, then woe to you if the developer nevertheless persuaded you to take part of the project's shares, this is very good. a serious hook on which you, and not you, the developer, were hooked ... The main rake here is that you made yourself a partner from a hired employee on whom you will depend for the rest of the life of the project, until you solve this problem with one of the images. For this developer, as additional motivations, you can offer part of the percentage of profits or options, but in no case make him a minority shareholder and partner. A developer can be a partner in a startup, if he has a long-standing serious relationship with an investor, the developer’s idea and he undertakes to develop it, then the 50/50 approach is fair here and such enterprises usually live and develop normally.

redakoc, 2016-02-19
@redakoc

The developer cannot be given a share.
Unless he's a co-founder, lead tech strategist.
Only money.
If ordinary developers are given shares, the project will not take off.