r/hwstartups • u/prettyborrring • 18h ago
How much equity should I be giving an early (pre-pre-seed) employee who is important but not critical?
I've been working with a designer who has been very helpful in getting our cosmetic prototypes designed and made. He's even helped source a supplier when our original supplier turned out to be not up to the task. He's very knowledgeable and willing to put in the time needed to make things happen. I would love to formally bring him onboard to lead the industrial design moving forward. However, there are a few things holding me back
- His function isn't the most critical piece at the moment. We've taken the industrial design as far as we can at the moment. The vast majority of the remaining work will be on the electrical and software engineering side
- He may not be in it for the long(ish) term. The only reason he has been able to help me so far is because he was laid off earlier this year and had some time to kill as he looks for his next opportunity. He also has a family he has to take care of so finding another role is a necessity. While that's not necessarily a deal-breaker, it does make me wonder if he would be able to continue contributing as much as he's had given his responsibilities as a family man
- While he's very knowledgeable on the CMF side of things, his "artistic" side leaves a bit to be desired. While this isn't a huge deal, it does affect my opinion on his competency long-term just a little bit.
As additional context, we are currently in the angel/f&f stage. Given all that, how much equity should I consider offering him at this stage?