Can an existing company be pitched as founder for startup?
- We are three partners who are already running a profitable software services business for over 6 years. We all get along very well. - I will be moving away from the services business to setup and get this new venture running in a new partnership with a new co-founder (my brother). - My other two partners will also provide all the required support to this startup and will also continue to run our existing business. - our new co-founder is not quitting his full-time job immediately. - all four will hold equity in the new venture (not equal)
An honest picture of our setup would be: 1 founder - self - tech and UI - 100% time commitment 1 founder - existing partner - project management/marketing - 50% time commitment 1 founder - existing partner - sales - 25% time commitment 1 founder - new cofounder - tech - 50% time commitment initially
Any advise on what would be the best way to present this founders setup as we approach incubators/angel investors (got rejected for YC w2014 btw). Is such a founder setup likely to be rejected by investors? The existing business will provide a lot of support for this venture, it works in equity distribution terms so can our existing company be pitched as a founder?