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Ask HN: We're about to enter into a partnership with a company / Advice needed
Hi there,
I've been building this SAAS / No Code platform for the past 1 year with my friend, and now we're at a critical point where we have some discussions with a company/founders on collaboration opportunities. And I wanted to see if you guys can give us some ideas on how to collaborate without getting burned. I will provide more details and also feel free to ask me as many questions as you think you need, so you can give us better advice.
To give more context, the platform allows you to create apps without a code, something similar to Microsoft PowerApps or similar. The company that we talked with does BI and services for multiple US clients using Microsoft PowerApps and a lot of other tools. They have demand for their services, and they want to sell our solutions, after polishing it, to these smaller clients/use cases, for which our solution is perfect, and they’re turning down at this moment. The thing is that we need to work on this more to make it production-ready, maybe in 3-6 months, and we have other jobs, I have expenses of 2000 EUR monthly (at the maximum optimization, as I live in Southeast Europe), and my friend has expenses of 4000 Euro monthly. They want to see the option where they would take care of these expenses, through a payroll from they're existing company. We however opened a company and want to keep it, but try to involve them in our company with some kind of equity structure or something
In addition to covering our monthly expenses, they are interested in helping us with business development, bringing us clients, and the sales part, so we can focus mostly on implementation/tech parts (as we’re both technical people).
They have tremendous experience in different industries and experience working with big corporations, and also they have a strong and large network that would be super beneficial for us. Also, they have 50 people working for them and they are saying that they can share some of their resources with us.
For us, it’s hard to find other investments at this point. We will need to bootstrap it ourselves but there is a fear of being late to market because of slow development since we need to keep our full-time jobs for which I get paid 50 euros per hour and my friend \~5000 monthly.
We certainly need to give ownership of the company to the other part, but we want to keep the decision-making of the product mostly to ourselves but with the flexibility to align with the requirements of the clients that they're bringing.
Any advice on any known partnership models for this case, or what kind of structure do you guys think that would be the best case for us?
- nprateem 3y agoI think if you can't answer this, you're likely to face other issues down the road. If they're offering to pay you they'll no doubt want you to sign a contract which will give them all your IP. You won't have a business after that.
- bitsbytes 3y agoYep, thats correct. We're considering another way of approaching this after receiving good advice from the communities that I asked the question and also brainstormed this with my co-founder. Will share more details soon.
- JimtheCoder 3y ago"We certainly need to give ownership of the company to the other part, but we want to keep the decision-making of the product mostly to ourselves but with the flexibility to align with the requirements of the clients that they're bringing." Yea, this rarely, if ever, happens long term.
- bitsbytes 3y agoThanks for your comment. At least short term, until the product is in a more stable point. What do you think about other parts?
- hakanderyal 3y agoThe ownership of the IP/product will be most contentious topic I'm guessing. Be very very careful about the legal side of things, work with a lawyer that knows this topics. Being on their payroll can give them rights to the product/your work depending on the laws of your country. Make sure the include every detail in the contract.
- bitsbytes 3y agoThe company is actually registred in US through Stripe Atlas. Will try to find a lawyer that we can consult on this. Thanks for your response.