Make sure there are clear milestones and metrics with an earn-in vesting schedule. The last thing you need is a stranger who immediately owns 25 or 50% of your company doing nothing except collecting rent 9or encumbering you’re business.

That said, if the arrangement can be structured to be fair to both parties this sounds like a great deal.

One particular thing I’d warn techies about are “business guys” asking for an ever longer list of uncompensated enhancements, only after which they put in their effort. If anyone suggests this — run. Both sides need skin in the game.

well there's a trade-off.

they get money in return.