>"I'd be inclined to have the company write you an IOU for your cash contributions so far, and split it 50/50, perhaps with one of you getting a tie-breaking share. The company can dispose of your IOU like any other short-term debt of the company at some point in the future when it has the financial wherewithal to do so. [See below about IOUs.] Your vesting clock starts 3 months ago, your partner's starts as of the day when he becomes full-time"
This is something I tried to suggest to my former cofounder. His contribution was merely financial, and he wanted an exorbitant share of equity plus the title of CEO. I tried negotiating with him, but somewhere in the course of it I realized he was not the right person for any startup, and the venture was bound to fail with him onboard. I resigned and now have a startup that is quickly growing with loads of customers.
This is something I tried to suggest to my former cofounder. His contribution was merely financial, and he wanted an exorbitant share of equity plus the title of CEO. I tried negotiating with him, but somewhere in the course of it I realized he was not the right person for any startup, and the venture was bound to fail with him onboard. I resigned and now have a startup that is quickly growing with loads of customers.