Equity / terms for a co-founder + Timing of raising money
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.