RichardDL

I know, dumb mistake. We were blinded by the logos "experience". Turns out the guy hasn't really done much execution in the last decade.

I especially like the point number 4. A lot of our plan would be hinging on him. And if things go wrong, it would be super painful and difficult to recover.

He wants to be a lead investor too. He just wants to be more than just an angel investor and help us. So we are thinking of taking some of the investment for X% and then suggesting a vesting schedule based on ARR. Like the e1g said in the comment below. 2% for every 100k ARR up to 10%

Yep, you are right, we are hoping that he would bring someone in to replace him afterwards. Or at least help us find someone. And with equity he would be invested into making this a success

Great points, thank you very much!

That's a great way to put it. It makes a lot of sense. Exactly what you said there must be an incentive for him to do the work and we need a way to measure it. Thank you very much for the insights! This is super helpful. I'm not sure how he will see this, but I think it's a good option to put on a table.

you are right, getting to the bottom of his intentions/motivations is crucial here.

Yep, we were thinking the same thing. vesting period. Also need to think about what happens afterwards. does he have a seat on the board, how actively is he involved, any expectations etc

Those are great points to consider. What happens afterwards. Thank you

To give more context, we have a product with few paying customers, 1k MMR. We have been building for 1 year now. Far from product market fit. The sales have been a lot slower than expected so far.

Thank you for asking. We can't pay salaries and he has a lot of industry experience, seemed like a smart, go getter that said all the right things during the interviews.

My delivery wasn't the best, you are right

Auto complete in programming has been a massive improvement. I use gpt for idea bouncing. Article correction.

I have been using AI to pre screen job candidates. It handles the first interviews so I can give more people a chance and avoid wasting time in repetitive interviews. Recruiters that used to spend hours every day interviewing people are now consultants selling and implementing AI.

Man I'm afraid AI has the power to do so much of our work. AI is coming for peoples jobs, making people way more efficient and reducing the need for extra people and it's going to replace a lot of people. Scary and exciting at the same time.

Termination clauses - we haven't considered those yet. Sounds like a sensitive topic. Any advice on how to approach it? How do put targets in a partnership contract? And is it fair to add something like that, putting expectations like that can also create a lot of pressure?