groktor

What are the things to have and what to avoid?

Are there any great online resources for getting started with this kind of writing?

Background: I have a startup I've invested a lot of time (and also money) into already, just about to go to beta and I have someone else who wants to join the team. They would be a valuable asset no doubt and bring skills I don't have.

I approached them originally about doing some work for me and me paying them for their time. After talking about the project they want to be involved long term, and they have offered to partner in exchange for a share of the company.

My concern is obviously how to make sure this is a priority project for them and that they only get the equity once they have 'earned' it so to speak.

I'm also concerned about just signing over X% out the gates and have been imagining some sort of agreement whereby they have a fixed amount available (let's say 5%) which they 'earn' over 5 years. e.g. 1% a year.

If we come to raise VC in the future (I guess crucially, in the first 5 years before they earned their full allocation) would this be an issue? I'd assume that the VC offer would want a certain % of the company, and then the remainder would be split between us two founders in the same ratio. e.g. 95/5

What's the best way to offer them equity then?

Is there any common setup for this kind of thing?

Any and all advice much appreciated.

Thanks HN :)