Monday, May 05, 2008

Equity Defined, Programmer's Version

I've started following a few programming-related blogs and aggregations lately, and I saw this post about equity that struck a chord. It's written from the viewpoint of a venture capitalist funding person, but the gist of it is sound - if you, the "Idea Guy" are trying to dole out as little equity in your new company as possible to the guys making the product, you're going to make someone very angry in the future. These days, you cannot afford that - your ex-developers can repeat the process at one of your competitors, leapfrogging your mistakes (the first one out the gate always makes some mistakes), and stealing your market.

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