HACKER Q&A
📣 BAWAD

Giving up 50% equity in a seed round


The monthly salary for an experienced software developer in a country is $800. I'm thinking about giving new CS graduates $1000 a month for two years to work on their own ideas in exchange for 50% equity. Is that fair?

I'm thinking about it more as a 2-year fellowship. I would be screening for high achievers with perhaps not so great ideas. The belief is that they could figure things out in 2 years.


  👤 Jugurtha Accepted Answer ✓
>Is that fair?

No.

This happens in North Africa and the Middle East with smart young, native, people.

I know students in these countries who're making more freelancing with small programming tasks.

$24,000 over two years for 50% of the company. It's not money. It's not even smart money. They could earn more elsewhere as a salary and get more elsewhere as founders, including the social proof of association with respectable shops.

There are people whose roots are from a place but are established elsewhere (Europe) who'll prey on these inexperienced people. I'm advising everyone I know not to fall for this. Life is too short. They're better off working for someone else with a high paying job than to believe charlatans.

Ask me how I know.