Hello friends, I was hoping to see advice on what would be a fair equity percentage for the following scenario:
- I came up with a new idea/concept that could possibly revolutionize an existing industry. This industry only has about 3 main competitors.
- I happen to work for a company whose owner also owns one of these 3 main business in the industry. This company has under 50 employees and has been in business for about 5 years.
- I presented the concept to the owner and the President & CEO of the business and they all liked the idea and would like to move forward.
- The idea supplements their current business and would open a totally new, 100% incremental revenue stream.
- The concept would require software development...possibly some hardware/product investments, and most likely a few dedicated bodies to make this idea come to life...all incurred by the company.
- The plan would be to file a patent together to protect the idea.
- My role in this, other than being the person that provided the idea, would be to help manage the project and advise along the way, with the potential of me at one point joining this other company full time as this new branch of their business grows.
Rather than just go with my gut feeling, I am looking to get some fair estimates on a fair share of equity and the patent for myself from a few different sources. I purposely don't want to share my gut feeling and influence anyone's recommendation. Thank you in advance for your input.