I've been offered a "partnership" in a tech startup. I put it in quotes, because this would mean me having a 0.6% stake.
The guys behind the startup came up with a really innovative idea in the field of gaming (I obviously cannot go into details). They have been working on the business for years. They put all their money into it and made a lot of sacrifices - they are two middle-aged men with families, but they had to move away to work on the business and they basically live together in a small rented office space. The classic entrepreneur story lol. I should also mention they have previous business experience, but no knowledge or experience in IT.
So anyway, I was hired by them as a freelance software engineer to build a prototype for proving their concept. The prototype was a success, and they managed to secure an initial 6-figure investment to finance development of the real product.
Their strategy is to get the product off the ground within 1 year, sell their stake to some investor, and retire. They say this has a potential of becoming a multi-billion dollar company and I don't think that's unrealistic.
They want to hire a team of about 10 programmers and want me to be something like a lead developer. Basically the guy who designs the whole product and oversees the development process.
What I don't like is that I'd have a tiny 0.6% stake. This would effectively make me a glorified employee. If their plan works, they will become millionaires and retire (basically the fastlane scenario), and I will make some money, but not enough to retire.
They frame it as they are giving me this awesome opportunity. In their minds, they put in all the work and sacrifice (legal stuff, securing investors) and I can join now and just reap the rewards of their hard work. I think they're underestimating the fact that they have no product yet, and I will be the guy who creates it. And they're valuing that at 0.6%.
I told them I don't feel that's enough, but they refuse to budge. They are saying that I will have this amazing salary and bonuses and that if I prove myself to be valuable, even the new owners will want to hold on to me and treat me well. So again, it sounds more like a job, than a partnership.
I also should mention that I'm working on my own fastlane business right now. I doubt that I could build a billion dollar company by myself, but I don't really need to, because I would own 100% of it. I don't like the fact that working for them would distract me from working on my business. But on the other hand, if I took the partnership, this would give me access to a social circle of millionaires, where I could potentially find mentors and investors for my own business.
What do you think? Should I take this offer, or should I refuse and only work on my fastlane business?
The guys behind the startup came up with a really innovative idea in the field of gaming (I obviously cannot go into details). They have been working on the business for years. They put all their money into it and made a lot of sacrifices - they are two middle-aged men with families, but they had to move away to work on the business and they basically live together in a small rented office space. The classic entrepreneur story lol. I should also mention they have previous business experience, but no knowledge or experience in IT.
So anyway, I was hired by them as a freelance software engineer to build a prototype for proving their concept. The prototype was a success, and they managed to secure an initial 6-figure investment to finance development of the real product.
Their strategy is to get the product off the ground within 1 year, sell their stake to some investor, and retire. They say this has a potential of becoming a multi-billion dollar company and I don't think that's unrealistic.
They want to hire a team of about 10 programmers and want me to be something like a lead developer. Basically the guy who designs the whole product and oversees the development process.
What I don't like is that I'd have a tiny 0.6% stake. This would effectively make me a glorified employee. If their plan works, they will become millionaires and retire (basically the fastlane scenario), and I will make some money, but not enough to retire.
They frame it as they are giving me this awesome opportunity. In their minds, they put in all the work and sacrifice (legal stuff, securing investors) and I can join now and just reap the rewards of their hard work. I think they're underestimating the fact that they have no product yet, and I will be the guy who creates it. And they're valuing that at 0.6%.
I told them I don't feel that's enough, but they refuse to budge. They are saying that I will have this amazing salary and bonuses and that if I prove myself to be valuable, even the new owners will want to hold on to me and treat me well. So again, it sounds more like a job, than a partnership.
I also should mention that I'm working on my own fastlane business right now. I doubt that I could build a billion dollar company by myself, but I don't really need to, because I would own 100% of it. I don't like the fact that working for them would distract me from working on my business. But on the other hand, if I took the partnership, this would give me access to a social circle of millionaires, where I could potentially find mentors and investors for my own business.
What do you think? Should I take this offer, or should I refuse and only work on my fastlane business?
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