
Financial arrangements for a temporary cofounder.  What should be done? - amichail

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amichail
There's a possibility that I may be able to work with someone for a limited
time period -- making him a temporary cofounder.

What sort of financial arrangement should be done in this case?

Since all I care about now is getting users, perhaps some merit-based scheme
taking into account the number of users he is able to attract to the site
might be workable?

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Sam_Odio
You might consider making him/her an employee and creating some sort of
vesting schedule based on predetermined milestones achieved and / or hours put
into the project.

This way you can retain the right to break off the arrangement, if things are
working out.

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mikesabat
I would look at it like convertible debt. The co-founder gets x percentage of
the company now OR you can buy that equity down in the future once you get
funded. Keep it open so that if you work well together the co-founder can
stick around and earn more equity. If you don't vibe, separate on previously
agreed upon terms.

