tech-company, equity, ctoI’ve read a number of articles and discussions on how equity should be split and it’s clear that it’s determined by a case-by-case basis and very much depends on the circumstances. I’d love to get some feedback on this particular set of circumstances:
A online marketplace startup is looking for a CTO to join.
The whole team consists of a founder with a business development focus, a co-founder with a marketing and business development focus, a graphic designer and two people who brings significant networking value.
Only the founders and the CTO will be full-time. The startup is very early stage and the CTO salary is very low.
What would be reasonable equity expectations of this CTO?
If I count correctly that’s three full time founders if you include yourself.
So one third. (And frankly, no ifs, no buts. You’re going to make it happen and you’re going to be underpaid for a while to boot. So get IOUs in addition.)
More details in the following two posts:
https://startups.stackexchange.com/questions/1885/how-much-equity-should-a-partner-with-a-short-term-commitment-be-entitled-to/1886#1886
https://startups.stackexchange.com/questions/3151/how-to-find-and-convince-good-technical-co-founders-cto-for-my-startup/3155#3155
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