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Want to revise ownership percentage before...
AppGuru
subscriber Posts: 1
what percentage of ownership is fair? Want to revise ownership percentage before...
Hi everyone,
I would like to get some advice on how to revise my % ownership in a company that I and one other friend currently own. My friend is the business guy and I am the technology guy. He approached my about 8 months ago to join him and become partners; running with one of his ideas. We incorporated the company about 4 months ago at (60%*/40%*). At that point I thought that was manageable because he came with the idea, but it now seem I am putting tons of hours into the development while I still need to do my regular 9-5 job, and there is still tons of work to be done by myself (only) to get a viable product to push out the door. One other point is we have actually shifted focus a bit from his initial idea because the cost of entering that market was just too high for us to afford and there are a lot of compliance and regulation that hinders us from getting into that particular market.
While going thru the stress of getting this application to a point where it could be used, I once again thought of why am doing this, and it became less appealing to me because after setting aside about 12% of the company for future investors or anyone coming onboard, I am left with about 34-35%, while he still owns about 55% of the company. That's what actually made me think I need to re-negotiate before we start making money; since am the CTO (Chief Technology Officer) there would be a constant revision and updating of the product to make sure we stay ahead of technology. So my efforts now will be continuous and on-going.
Am I in the wrong to ask for a revision to our legal paper work that was filed.
* The reason I agreed to this was, he told me when dealing with partnerships (other companies), it looks better if it seems one person is the decision maker and not multiple people.
Hi everyone,
I would like to get some advice on how to revise my % ownership in a company that I and one other friend currently own. My friend is the business guy and I am the technology guy. He approached my about 8 months ago to join him and become partners; running with one of his ideas. We incorporated the company about 4 months ago at (60%*/40%*). At that point I thought that was manageable because he came with the idea, but it now seem I am putting tons of hours into the development while I still need to do my regular 9-5 job, and there is still tons of work to be done by myself (only) to get a viable product to push out the door. One other point is we have actually shifted focus a bit from his initial idea because the cost of entering that market was just too high for us to afford and there are a lot of compliance and regulation that hinders us from getting into that particular market.
While going thru the stress of getting this application to a point where it could be used, I once again thought of why am doing this, and it became less appealing to me because after setting aside about 12% of the company for future investors or anyone coming onboard, I am left with about 34-35%, while he still owns about 55% of the company. That's what actually made me think I need to re-negotiate before we start making money; since am the CTO (Chief Technology Officer) there would be a constant revision and updating of the product to make sure we stay ahead of technology. So my efforts now will be continuous and on-going.
Am I in the wrong to ask for a revision to our legal paper work that was filed.
* The reason I agreed to this was, he told me when dealing with partnerships (other companies), it looks better if it seems one person is the decision maker and not multiple people.
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