Building a startup & I'm having problems negotiating with technical engineers

Hello guys, I’m building a new fintech startup and I’m in search of a technical engineer, the problem I’m having now is that the engineers I have approached want to be co-founders of the startup.

This is my first time running a startup and I don’t want to make any silly mistake… Should I let them in as co-founders or not ? And what’s the right way to negotiate with a co-founder or a technical engineer ?
Please I need help and answers. Thanks guys

The point truth is this…
You need to learn more about startup eco-system.

There is no one way approach to building a startup, as you are going to meet different situation which you or others haven’t met before, but your resilience and knowledge of the terrain is what will keep you moving.

Secondly, building a startup of such will actively require a tech person in the team, either as your Co-founder or CTO because he will need to oversee the engineering and technical aspects, including hiring the right person with the right skill if needed.

So Yes, you will need him as a Co-founder.

Draft a papper agreement and both party should sign it with an agreement on what roles and share individual will be parting with.
More also learn up alot about startup eco-system…I can’t stress this enough.

If you have some edge, consulting a startup legal entity will save you from half of the stress.
To you success, remain great.

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I would say you are a lucky person to have a technical co-founder.
You will definitely make silly mistakes which is ok, as long as you learn from them.

Bravo.:clap: Well explained

Thanks boss…I appreciate

I will suggest you checkout this free platform: startupschool.com
There are tons of videos on the site and you can provide weekly updates to keep you accountable and join group discussions with other startup founders.

With regards getting a technical expert on your team, the general guidance given is that you should have a technical co-founder so you don’t burn through your precious cash paying for development work as a new startup. Rather, you would have someone in house performing the initial phase of development all for free and the person has a personal stake in the success of the business. However, it is ideal to ‘know’ your cofounders and have a good working relationship with them, as being cofounders in a business is liked being married and it is ideal to know who you are married to…

If you don’t have anyone you know and can vouch for to be a technical cofounder, it might be better to hire a competent Engineer, say as a CTO, and also give them some equity to motivate them. However, ensure there is a vesting period for the equity you give them. Startupschool.com materials indicate the typical terms in Sillicon Valley for this is 4yrs vesting period with a 1yr cliff. So if you let the person go within 1yr, they don’t get anything. Then as each year passes, 25% of the shares vests, meaning they can purchase the vested shares at whatever price was set - usually a nominal/small amount. With this approach, you can evaluate if you both work well together and if the person would be a good fit for a cofounder. Then if you want and the person is open to it, you can offer them the opportunity to become your cofounder.

Good luck!

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