#SaaS #Founder #MVP #Equity #Startup
Hey everyone! 👋 I need some advice on a tricky situation I’m facing as a non-technical founder in a pre-Revenue SaaS company. I’ve found a potential technical founder who could be a game-changer for my startup, but there’s a catch.
Here’s the dilemma: Should I pay $15k or give 20% equity for them to build our MVP and set up the marketing site and CRM? They’re hesitant about committing long-term until they see how the business performs. So, what’s the best move for my business?
Here are some considerations to keep in mind when making this decision:
– Paying $15k upfront could be a good option if you have the cash and want to maintain full ownership and control over your company.
– Giving 20% equity might be a better choice if you want to align incentives with your technical founder and ensure their long-term commitment to the success of the business.
In my opinion, it might be worth considering a combination of both options. You could offer a lower cash payment along with a smaller equity stake to strike a balance between the two.
What do you think? Have you been in a similar situation before? Share your thoughts and insights! 🚀 #StartupLife #Entrepreneurship #TechFounder
20%. But diluted if everyone gets diluted
Cash is always cheaper than equity
If you have that much dead weight on your cap table you will never be able to raise VC funding? I would say either get a firm commitment from your co-founder, or find a new one.
Maybe your potential cofounder wants to work with you and assess your business skills before committing any further? I’ve unfortunately as a technical co-founder worked with too many non-technical co-founders who struggled with market validation and other critical skills.
Cash especially if the cofounder is valuable but equity if cash is not as accessible
You are valuing you company at less than $75k if you take the stock deal. I hope this answers your question.
No one knows how invested any founder will be at any stage of the project. It’s always a crap shoot. So, if you think this is a good fit I think giving the equity means a MUCH higher chance they have buy-in once the MVP is done and could stay on.
Really up to how well you think this match would work.
Cash. See how you work together before giving equity if you can.
get the clients to pay up front and use the cash to pay the dev
$15k is nothing in the grand scheme of things.
If your business is worth $100k, it costs you $20k.
Multiply that by 10. You really want to pay $200k?
i can’t imagine giving away a fifth of my business to get buy-in from someone who doesn’t seem that hyped and isn’t well known in skill
the alternative is less than a car
DMed you
Hello everyone,
My name is Ahmed, and I’m from Pakistan. I’d like to share my journey and what I’m currently seeking. Throughout my career, I’ve worked in various industries, including call centers, B2B cold calling, the SaaS industry, and the eBook industry. In each of these roles, I’ve held positions such as sales representative, project manager, accounts manager, and customer support representative.
Despite generating substantial revenue—ranging from $30,000 to $50,000 per month—for the companies I’ve worked for, I’ve received minimal compensation in return. This includes low incentives, salary, and commissions. This situation has led me to a pivotal decision: I no longer want to work for others. Instead, I plan to rent a space in a coworking area to start my own venture from scratch, aiming to earn for myself rather than for someone else.
Currently, I’m seeking business partners, particularly individuals located in the USA, Canada, or Australia, who are interested in collaborating on a business venture. I am open to discussing plans and strategies and can offer various services. For instance, I can manage a complete production team here in Pakistan, where labor costs are significantly lower.
I’m feeling quite stuck and unsure about the next steps, so I’m reaching out for guidance and partnership opportunities. If anyone is genuinely interested in exploring possibilities, such as how they can contribute from their location and how I can support from mine, I’d love to have a conversation.
Thank you in advance for your time. I am confident that I can gain valuable insights from this group.
Best regards,
Ahmed
I hey is your SaaS product ?