How do I set equity for a technical co-founder in a SaaS startup?

[Paisley51]

I’m trying to decide whether to bring on a technical co-founder for my SaaS product, but I’m struggling with how much equity to offer. I’ve built the initial prototype and have some early users, but I need someone who can actually build a scalable platform, and that feels like a massive commitment to share. How did you figure out what was fair when the person would be coming in after the initial risk but before any real revenue?

[StevenMR]

First time I did this, we gave a lead engineer 25% ownership with four-year vesting and a one-year cliff. It hurt when we later diluted, but it made it possible for them to own the core architecture and decide on scaling tech. We also baked in a 10% pool for future hires so we could negotiate with others without collapsing the cap table.

[Joseph7]

Another time I aimed for around 10–15% for a strong builder joining before revenue, with four-year vesting and a one-year cliff. We kept a small milestone component and promised more if they hit the first reliability targets.

[Oliver_T]

I keep thinking maybe the real hurdle isn’t the split but whether we actually need a technical cofounder yet. Maybe the problem is product-market fit or the right early customers.

[OliverXP]

I went with a staged approach: give a modest upfront stake and tie the rest to milestones like reaching X users or Y revenue. It helps avoid over-committing when the project hasn't proven itself.

[Stephen.M]

I once debated whether to hire someone as a contractor first and see if the collaboration sticks, then do a larger stake. It felt safer, but the trust wasn't there until we formalized something.

[AaronZH]

Maybe the problem is how you frame the role rather than the amount; if you can't clearly define what they own day to day, the stake may not matter.