HACKER Q&A
📣 mortallywounded

Are technical founders typically treated this way?


Recently, a founder from a former company I worked at reached out to me regarding joining their new AI-venture. They approached me because I had experience as a founding engineer of their previous company (in the same space, but several years ago pre-AI hype).

We discussed the problem space, my experience in it, advances since the last venture, etc. They showed me a very rough prototype (something anyone could do in a day or two using a few public APIs).

They offered 5% to 10% in equity (remaining equity split between the would be ceo and co-ceo). I proposed an equal split across the board and I proposed an option to draw a fair market salary post funding without giving up equity to do so (we would be doing this for ~8 months with no salary).

My reasoning was simple enough. I wanted enough equity to make it through seed and series A/B/C. I also wanted the salary post funding to offset some opportunity cost, etc. I also made it clear, although they made a rough prototype, the vast majority of the work is still ahead and given the technical nature of the product there will be a lot of it.

Needless to say, they didn't take it too well. Although we ended things friendly, I could tell they were not very happy with how it ended.

Am I the unreasonable ass here?

I left feeling like the technical founder role was a glorified code monkey. Why give the technical founder more than 5-10% when you can pay someone offshore to "do it"? This of course, ignores all of the work I've done in the problem space. The experience I have working with one of them and so on... I'm not sure what the best way to describe how I felt was... undervalued? devalued? Engineering is a commodity? Honestly, it made me question if I wanted to build anything anymore at all.


  👤 mtmail Accepted Answer ✓
I've dealt with a similar situation. The CEO claimed he wrote a business plan, validated the idea (some hackweekend where only the idea was presented, no prototype), will quit their job and put 20.000 Euro into the company (can't remember the exact number). I countered that, sure, I'll put 20.000 Euro for 50% of the shares. CEO didn't like it, apparently the soon-to-be company was already much more valuable. In fact he gave up shortly after so value went to 0.

👤 PaulHoule
Sometimes yes.