Remove Deal Structure Remove Dilution Remove Marketing Remove Product Development
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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

They’re well aware of the conventional VC bias against funding companies which externally develop their technology, but they do have relevant skills. If the dev shop puts in $100 of (market-value) labor, they should be compensated for that amount in equity — just like an investor gets their share for $100 in cash.

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The Pre-Seed FAQ

K9 Ventures

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. As explained in The New Venture Landscape post: Pre-Seed is the new Seed. (~$500K used for building team and initial product/prototype).