equity, softwareI am an intern at a software development company. Recently, boss briefed us about a new project he wants to do. If the initial idea works out well, the plan is to fork this into a new company and get VC funding.
The product is mostly mobile-focused. I am responsible for designing the UI, coding, testing, and release of the mobile app. Plus, I have to do some work on the server, too.
If the idea works as expected, can I ask for equity?
Also, how do I decide how much to ask?
You might, depending on how generous your boss wants to be and how well you work.
Keep in mind that a) you’re an intern, b) it was not your idea, c) you got briefed on it (i.e. you didn’t even have a say on whether you should be doing it) and d) you’re getting paid to do it.
If you end up instrumental in actually pushing it forward, you might have a happy surprise down the road, of course. But don’t set your expectations too high.
Your chances, in the future, will be minimum.
You should ask for equity before doing anything.
If your boss thinks you are valuable for the project, he will agree and negotiate some equity beforehand. If he thinks you're not worth it, then no matter how much money this company makes in the future, you won't get a dime.
About how much
Let your boss speak first. Again, it depends on how much he thinks you can aggregate value for the overall venture. Maybe he will offer more than you expect - but keep in mind that you're not going to get a huge stack once the idea is not yours, you're not putting any money on it and you will even have a salary.
It doesn't matter, people like you - i.e. early employees - in really successfull companies became millionaires with their shares. Ranging from 0.001% - 1.0%.
Software Engineers, Secretaries, Designers and even this Graffiti Artist, who made $ 200m on Facebook shares.
But what all of them had in common? They negotiated the equity on day 0.
Good Luck!
My personal advice:
Place you CV with complete description of your current experience and possible working time on job sites and find out what can you get in another company.
Come to your boss and speak about the salary upgrade.
Make your decision based on the results of you investigations and negotiations.
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