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Comment by iratewizard | Hacker News Reader

This seems like a doubly losing proposition. If you created my idea and I only get to keep 20%, I wouldn't assist you very much in maintaining the business. If I were to partner with someone, I would resent shelling out 20% to an absent partner. Ideas aren't worth a fifth, and a fifth isn't a suitable carrot/stick.

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Thanks for your comment. I think 20% is a fair price for idea/validation/first sell and direct access to a customer space. If it's going to be a $100m company in 2 years then yes, 20% is going to hurt, but honestly I don't expect that.

Maybe not hurt if it was not dilutable, the initial 20% holder could be issued more shares to keep their percentage at 20%. By the time 3 or 4 rounds are raised the initial 80% owner might only retain 20% after dilution. So in the end you have to look at the cap table after future rounds, the fact that during a period of history (probably before there is any real cash to distribute) the split was 80/20 won't matter.

But more importantly, if I build the product and get the first customer what do I need you for? 2k is chicken shit. Unless the idea is a throwaway, something I'm not passionate about, I'd just build it myself.

Suppose you have more seemingly good ideas then you could possibly build yourself.

Exactly! Gotta focus on one or the other. Either pay me for the idea, or I pay you to do the work.

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