The company was founded by a friend of mine who is very passionate and driven, and has been working at it for ~5 years. They have approximately twenty employees working on content, all of whom are compensated through shares. They have significant traffic to their website, and are looking to have it redesigned from scratch. So far they don't have any revenue, but have recently secured investment on the condition of a working prototype.
I have an undergraduate degree in software engineering, and am currently working towards my master's. I have 5+ years of experience in building web applications. I will be the first real software engineer that they've had, since they've outsourced all of their development work so far.
My friend, the CEO, has offered me a trial run of three weeks, after which point we'll proceed based on the quality of my work. He said he'll offer around 5%/year, but it could be more or less, depending on the quality.
My question is: is this fair? Seeing as the product is a web application, I know that the actual execution is the key to whether the company fails or succeeds, and I feel like 5%/year isn't really reflective of that. On the other hand, I realize there's a lot more to running a company, such as finding the right people and building a reputation, and he's been at it for years.
From his perspective, I will just be another employee. From my perspective, it'll essentially be my job to make this thing work.
What does HN think? Any input would be appreciated :)
I joined a startup that had limped along for years just as it was launching a new product. I slowly realized that this new product was the company. Everything else was water under the bridge.
However, the company (and certainly its investors) didn't see it that way. They'd invested a lot of time and money. To them, the idea that I would have as much stock as someone who had been there for 7 years seemed unfair.
The company badly needed new funding, and it all fell apart for this very reason. Someone offered to put in a lot of dough. The existing investors and stockholders figured, ok, you're offering about 10% of what we've put into this company, so you get 10%. Okay, 15%.
The investor figured, no, that's all water under the bridge. The money I invest now is almost a brand new investment. I need way more than that. They couldn't reach a deal and the startup folded.
You may be in a similar spot. Your buddy, and all his employees, figure they've been at it for 5 years. But does that 5 years have any meaning, or is it just dead weight?
You did say that they have "significant traffic", so maybe there is a lot of value already there, and you'll be building on top of something already successful. Or maybe there's nothing, and you're essentially starting a new company but with all the baggage of a failed company.
Hard to say, but this is what it all turns on, as far as I can see.