Hi guys, this is more of a general question but me and my friends are all new to this and I'd like to hear from people who went thru similar situation.
3 of us started a company together, we're friends. CEO had the idea, who then approached the friend who was appointed as COO and they approached me to be the CTO and build up the app. I did build the app, and we decided to discuss the equity distribution once we've worked a bit and seen how much we contribute.
Now, we had the discussion last night. The results were: CEO 40%, CTO 30% and COO 30%. We're starting with $5000 initial investment where I don't pay anything, CEO pays $2750 and COO pays $2250. I was happy with the distribution, somewhat, but then again,
- I built the entire app. It'd probably cost them more than $5000 to make the MVP of an food tech app similar to (for the argument's sake, uber eats)
- The CEO did have the idea, so I don't mind the CEO getting bigger share of the pie.. but the COO isn't contributing much yet.. I feel like 30% for me might not be fair compared to him getting 30% as well considering the effort we put in to this date. But COO will have a lot on his plate when work starts. But that's still a huge risk considering it's in the future. The COO brings political backings and connections in the country, which we'll need to survive in the political situation of the country we're in, but still, I'm making the app.
- CEO 40% and COO 30% will give them outright majority in decision making. Which as friends doesn't seem as bad but this could someday turn into a lucrative business and bite me in the bottom.
So, do you think the 40-30-30 split is fair? Should I push for more? Am i overthinking this about the COO getting more than what he should as of now? COO is my best friend.. or you could say one of my closest friends.. but business is till business
Cause I do own the IP, I'm the only one with access to the codebase and $5K isn't a big deal for me.. so I won't lose anything if I back out of the team with my IP.. I basically hold all the leverage. But I don't want to be an asshole.. I want to be practical and fair to me and my friends. Please suggest what I should do~