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  1. #1
    Working on it... Contrid's Avatar
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    Project Funding & Partnership

    Hi there,

    I have found a partner whom is willing to fund projects, assist with hatching new ideas and help in several other areas related to support and marketing.

    The partnership will be based on new software packages which are to be developed and released in the future as well as software packages currently being sold commercially, generating a stable revenue on a monthly basis.

    The reason why I'm interested in joining with someone is for both the physical funding of projects and of course for the additional expertise which will be provided to the business. I'm flexible as to how the funding terms should apply, though the current agreement is that I will be funded based on an hourly rate for the time spent on developing, maintaining and supporting the software package, each individually.

    What type of agreement would you suggest? Meaning, how should the income generated from the software be distributed (percentage wise) between the other partner and myself? What is a good way of doing the appropriate calculations and come up with a solid, fair agreement?

    I'm completely blind with this. Any advice, suggestions and recommendations will be greatly appreciated.
    And so I got lost in code...completely asphyxiated by it...

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  2. #2
    chown linux:users\ /world Hartmann's Avatar
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    Quote Originally Posted by Contrid View Post
    What type of agreement would you suggest? Meaning, how should the income generated from the software be distributed (percentage wise) between the other partner and myself? What is a good way of doing the appropriate calculations and come up with a solid, fair agreement?

    I'm completely blind with this. Any advice, suggestions and recommendations will be greatly appreciated.
    I think this is the key of the discussion that you and your potential partner need to have. What does your partner want in return for the money that they are fronting to help you in your venture? There are no formulas that I know of, just an agreed upon amount.

    In typical venture capital deals the partner receives 2% of the committed capital and 20% of the net profit. This is basically a stake in the company.

    You need to discuss these things with the partner and find out what they are looking to gain out of funding you.


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