Need help starting a startup.

Hello BHW,
I have a really good idea for an app that I believe has potential to be a multi-million, even billion dollar company. Don't worry, I'm not just another kid on the block who thinks his ideas are the next big thing. I know what I'm talking about here, I've been thinking about this idea since a while now.

Now, I have plans to apply to Y-Combinator because I believe they have the assets and the experience to rightfully launch something like this. However, this is what I need help with -

1) I can do the designing, product planning, and managing. I have a very good idea and I have a great vision for it, so I can explain it without much problem. But, I do not have the skills required to create the app itself. I could very well learn how to develop apps but that would take a lot of time and I'd much rather have a co-founder who has been programming since a long time. The question is, where do I find the right person for this? How do I trust that they won't run away with my idea? How do I trust their skills? And again, where do I find someone impressive and dedicated enough?
I am looking for people who have the capability of creating an app as big as Uber.


2) How much equity should the co-founder get?
Y-Combinator usually takes 7% of the equity and the rest falls to me. I do not want to give too much equity to the co-founder(s) as I will be doing a lot of things myself other than the coding. I was thinking around 15-20% equity and to get 2 co-founders. So 30-40% in total goes to them, 7% to Y-Combinator and the majority falls to me. I could be very wrong about this, so please feel free to put forward your opinions. I believe this falls to the co-founder on what they agree on, but what should be the highest I should give them?

3) Should I hire a programmer instead of getting a co-founder? I probably feel like it's better to have someone be there with me in it, dedicated to the actual thing, than having someone do what you tell them to since they won't put as much effort into it as someone who wants to see the app reach new heights. Just wanted to put this here, in case anybody has anything to put forward that might change my opinion.

4) How much does it matter where the cofounder is from? Should I focus on finding somebody who lives atleast in the same country as me? (India)


I would very much appreciate all the help I can get.
Thank you.

ray. said:

3) Should I hire a programmer instead of getting a co-founder?

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According to Y-Combinator's FAQ page you would need a co-founder who can build the actual product.

I have a great idea for a startup, but I'm not technical. Will you still fund me?
It's important for the founding team to have the skills to build their product themselves, rather than outsourcing it to someone else. For most businesses, that usually means you need a technical co-founder.

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As for the equity part, if all he has to do is write the code for your app then I suggest a take-it-or-leave-it offer of 10% max is already very generous, especially if your idea is really in the multi-million (billion) business range.

I'm not a lawyer but I guess there are waterproof documents that prevent him from running away with your idea, just seek legal advice to take care of this problem.

Just a side note, be careful how much of your company you give away. People often think that if they keep at least 51% of their company they are safe. That's not the case, here in the UK for company decisions (Special Resolutions) opposing views need only 25% of the company to put a stop to something.

Which could mean that the company goes in a direction you are not happy with.

How do I trust that they won't run away with my idea? How do I trust their skills?

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there are waterproof documents that prevent him from running away with your idea

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There is no guarantee that someone will not run away with your idea. If idea is really good someone can start company in some offshore country and publish this app... and you are screwed. If this app is your be or not to be... learn how to code.

I just watched a video by YC that explains it's not a good idea to have your co-founder be somebody you don't personally know or haven't met in reality. So the idea of getting somebody online goes against their suggestion. They also ask that in their application and I have a feeling they straightup reject those who don't properly know their co-founders.

I am in a college but I'm not sure how to find people who are actually skilled in coding. It's not the best engineering college there is, it's kind of medicore. Any ideas on how else I could find somebody to work on this with me or find somebody well-worth it in the college?

I am going through this currently for an program development.
I am seeking initial round of funding without having anyone onboard to code.: Classified as the the Research/RD phase, I am working through initial angel investing for a 40% total share being offered up: seeking $1m.
I am open about not having hired a programmer yet, but my program would require multiple programmers, more than just an app, so it doesn't seem off-putting to investors yet.

Gadot said:

As for the equity part, if all he has to do is write the code for your app then I suggest a take-it-or-leave-it offer of 10% max is already very generous,

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Hahahahaha, good luck finding that sucker

especially if your idea is really in the multi-million (billion) business range.

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Ideas are worth exactly zero. The execution is everything.

ray. said:

Any ideas on how else I could find somebody to work on this with me or find somebody well-worth it in the college?

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Chloroform, van and wireless internet?

On a more serious note though, you have to realize that what you bring on the table is pretty much nothing unless a) you've successfully run a startup before b) you have access to premium-terms funding c) you have really valuable connections on the target niche.

Without any of those, your practical paths are:

a) Scrape funding to pay a developer
b) Learn coding yourself (the excuse about the college quality means nothing, everything you need is online and mostly free)
c) Trick some newbie to get advantage of.

I'd advise against the latter because it will blow on you fast.

jazzc said:

Hahahahaha, good luck finding that sucker

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So every coder that says no to 10% equity in the next "Pied Piper" is a sucker?
Gilfoyle and Dinesh each got 3% albeit they were only hired as coders and not co-founders so fair enough

You're right about everything else you mention in your follow-up post #8 though so I give you credits for that !

Gadot said:

So every coder that says no to 10% equity in the next "Pied Piper" is a sucker?

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You'd be right if lifetime was an unlimited resource, which - people say - it isn't. When you have an actually valuable asset such as the ability to create things from nothing, you can't spend your years deploying it for free for every nutjob with "an idea".

In other words, if Elon came and told me "2%, you work for free" I'd be "where do I sign?". For "a guy with an idea"? I'd be insane.