I am a sole founder of a startup. I have spend few months on an idea and have executed a simple MVP. I am technically adept but not a complete hardcore techie. I know someone who is exactly that - who has extensive experience in building up large systems on various stacks and putting them in production. 1>> I am confused about the Equity and Compensation terms for him. Added to the mess is that he is on H1b, which means will have to shell out a salary as well. The fact that he is a friend also adds to the confusion - will offering something like 10% plus CTO be offensive ? 2>> I would like to raise some money now - at least to fund a year of R&D , let’s say 200-300K at least. Will now be a good time or should I develop a detailed MVP and at least some real customer feedback data before pursuing investors ? Even for offering him an H1b I will need to show some money ideally.
Perfect recipe for losing the business and frriendship. Find someone else.
On the related topic of finding someone else, does it make sense to outsource the design and implementation of the final MVP (I will remain heavily involved) ?
Investors will trust your company more if the tech was done in house. But if you outsource and are able to show signs of product market fit, that's positive too.
OP - Checkout Unshackled Ventures. It's an accelerator/program here in Sil Valley. They invest up to $160K and sponsor your H1B so you can work on growing your startup.
I would walk away if I was your friend, and never look back
Why?
Precisely why I was apprehensive. Want to explain your answer ?