I'm a non-tech edtech CEO. I outsourced the MVP which is earning ~ $50k (month 2) growing fast in $100B+ space. What offer is fair for an A-list CTO?

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JASON LEMKIN

It’s an interesting time.

Pre-product, and certainly, pre-code … the only way you can figure out equity splits is on a relative basis.  We’re 50/50 partners.  We’re 2:1 partners.  Etc. etc.

One you are fully established, more traditional rules tend to establish themselves.  1% for senior management.  0.2% for an experienced director.  Etc. etc.

You’re somewhere between.  You have a real business ($50k/mo) but … it’s a hacked MVP.  You can’t scale it, you have no team around it, etc.

Your CTO, if she’s going to rebuild the entire thing herself from scratch, so it can sell … may be close to an ex-post facto founder.

Fairness is the right answer.  My suggestion is in-between those two paradigms.  My guess is this will net to around 5%.

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Published on January 10, 2016
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