

Ask HN: Joining a team later as a co-founder - kineticac

Has anyone here joined a team as a co-founder, even after the initial team already started and incorporated?  What are your red flags if you're approached with such an opportunity?<p>It's one thing being with your friends from the beginning of a project, but getting pitched an idea and then offered to become a co-founder can be shaky.<p>Is an even split still expected?
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newy
Be very careful with these type of opportunities, especially if a lot of time
has been wasted on stuff that adds very little value in terms of getting the
company traction. If the company has customers already that's one thing. If
the company has just some standard incorporation stuff, an idea, some failed
prototypes, a bunch of sketches, etc, think long and hard before jumping on
board because the other "original" founders will always hold this over your
head and in one way or another you'd be second-class. A smaller percentage is
one thing, but look out for any vesting or other provisions they try to bring
up that may severely impact your leverage and position within the company.

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workhorse
My situation was not identical, but similar.

If you're not there from the beginning I would not expect an equal split. The
longer the startup has been around, the less equity you can expect to get.

I like to look on the brightside of things. Being a skeptic can be harmful. If
your gut is telling you that something isn't right, than be careful.

Trust your instincts.

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jacquesm
Whether or not an even split is still to be expected depends on a few factors,
such as how long they're busy, what their outlay was and their compensation to
date vs yours.

If they've been busy for a while and they've passed through one or more cusps
would mean that your risks are reduced, on the other hand if this start up is
two weeks old then I'd lean towards an even split, depending on what you bring
and whether or not the others have 'an even split'.

If you're being approached then that would be based on reputation and talent,
have a long hard look at the business case and if you believe in it then you
can weigh your options.

Make sure if you have a s.o. that they're on board, start up life can be
pretty stressful.

Best of luck.

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tptacek
An even split isn't even expected when you're there at day zero. Everything is
a negotiation.

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DaniFong
I don't think an even split is expected (or even suggested -- consider that
Sequoia takes around 30% only!), but a good rule of thumb is that, prefunding,
someone who joins is a cofounder. It really changes your perspective when
you're part of a team with a vision, maybe some duct-tape prototype, and the
idea that, come hell or high water, they're in this together.

Bill Joy joined Sun after the founding. One of my partners joined us later,
too, They are absolutely cofounders.

That said, the biggest red flag? Dishonesty. If you smell a whiff of it, I
would advise serious caution.

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tptacek
If you're taking a regular wage from a company starting the first week of your
employment, then whether there's funding or not, you're probably not a
founder.

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DaniFong
A wage from what? I said prefunding :-)

You're right though, I probably should have said 'prewage' :-p

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tptacek
We've never taken funding, but we have lots of employees. They're not all
founders. =)

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agotterer
I was in a similar situation. I was "recruited" as a co-founder and CTO about
a month after the idea was born and organized, but nothing built. I was given
a smaller percent then the other founders, but adequate for what I brought to
the table. As another commenter mentioned, an even split doesn't always happen
even when everyone is there from day one. At this early stage its all about
who brings what to the company...

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gte910h
Only rake less if you risk has been reduced

If all the have done is pretty std business startup crap a monkey with a
phonebook and checkbook could do, that does not really count as risky work

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gte910h
And by no means am I advocating equal splits. You should b compensated based
on what you bring, your risk and based on your opportunity cost

