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Share Ownership Partnership Agreement

    • 1 posts
    March 12, 2013 1:49 PM EDT

    I have been given an opportunity to join a very recent startup that has a product currently underdevelopment (and still requires development before it can generate revenue). This product was in development a few months before I was engaged. There will be 3 partners (1 being the original founder). It may be also possible that myself and another partner may be named founders as well (still up for discussion).

    In any case, the original founder wants 55% as they wish to have their work recognized and I would receive the balance of 22.5% (and the other new partner would also receive 22.5%). The issue I see with this is a matter of control. If the two of us are going to be brought in at 45% we will essentially have no power. Keep in mind that the product in development may or may not end up being the sole product that the company produces. It may even abandon the original product. With that in mind we would be still locked into the 55/22.5/22.5 ownership structure.

    Is there any way to re-work the ownership structure when the product dynamics change? Would a vesting schedule help in this situation. Would some kind of majority voting help navigate the waters as we move forward?

    [I'm not sure if I'm being clear enough - tough to articulate the essentials]