How much percent of stake for one joining startup in Marketing role

[sai190699]

Hi there, I really need some guidance on how much stake should one give in startup for someone joining as Marketing and VC strategy role. I have no idea if the one joining asking too much stake. Currently he is asking for 12 % stake to take responsibility of making VC fund strategy and getting VC funding and for marketing. The product has gone past MVP and we are doing domestic market launch. We are planning to collaborate with them. Is 12% really worth. On what factors should one evaluate how much stake to be given. Is it really required for collaboration with them or should we go for VC funding by applying ourselves instead of seeking their help.

 

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[Subsonic]

Hi there, I really need some guidance on how much stake should one give in startup for someone joining as Marketing and VC strategy role. I have no idea if the one joining asking too much stake. Currently he is asking for 12 % stake to take responsibility of making VC fund strategy and getting VC funding and for marketing. The product has gone past MVP and we are doing domestic market launch. We are planning to collaborate with them. Is 12% really worth. On what factors should one evaluate how much stake to be given. Is it really required for collaboration with them or should we go for VC funding by applying ourselves instead of seeking their help.

If he can get you funding which at great rates which you wouldn't be able to get otherwise and also does great marketing then 12% is great.

Generally it's always better to own a smaller piece of a bigger pie compares to owning 100% of nothing.

What you have to do is evaluate if that guy will actually be able to do what he promises. Does he have a good record/ experience. If not then he is probably just as qualified as you and giving him equity is stupid.

 

[sai190699]

If he can get you funding which at great rates which you wouldn't be able to get otherwise and also does great marketing then 12% is great.

Generally it's always better to own a smaller piece of a bigger pie compares to owning 100% of nothing.

What you have to do is evaluate if that guy will actually be able to do what he promises. Does he have a good record/ experience. If not then he is probably just as qualified as you and giving him equity is stupid.

Thank you for the reply. To add more context which might help you to suggest further, one his track record, he was part of startup which raised 80M and also claims to have good connects in his circle, so anytime he can talk with decision making people in those companies and help in reach our product. The product has crossed MVP stage and to be market launched. They are joining after 1 and half year of our extensive journey on product development.

 

[Subsonic]

Thank you for the reply. To add more context which might help you to suggest further, one his track record, he was part of startup which raised 80M and also claims to have good connects in his circle, so anytime he can talk with decision making people in those companies and help in reach our product. The product has crossed MVP stage and to be market launched. They are joining after 1 and half year of our extensive journey on product development.

I can't make this decision for you. I own a cookie (food cookie btw) company that's about a year away from taking funding and has currently earned a grand total of 300€.
If anything I can tell you basic human interaction things.

You could make a contract that states he looses his equity if xyz happens to secure you.

 

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[theag]

The combination of marketing and "VC strategy" (whatever that is) seems weird.

Talking to VCs / raising money is the founder's responsibility at this early stage. You will need to convince investors and can't outsource this. So I would not give out any equity for this part.

he was part of startup which raised 80M

Only relevant if he was part of the founding / executive team. If he was, that startup must have failed hard despite all that funding, since he is looking for something new now. So I guess he wasn't.

The product has crossed MVP stage and to be market launched. They are joining after 1 and half year of our extensive journey on product development.

So you did the hard part without funding and without any grifters in your team. Why give away equity now? Why raise money now? VCs will want to see traction at this point. You missed the time window where you could sell only a vision, since the product is already developed.