I was recently talking with a colleague from an extremely large corporation. We were discussing the relative cost of building smart phone applications. He went on to tell me how much they paid for the app after he gave me a demo on his phone. He then asked the price it should have cost to build it. I told him it should only be cost 5-10% of the price they paid.
Flummoxed he asked some advice on how to get things built for this much lower clip. Here is what I told him – Remove your logo from your business card before you get the quote. He laughed and asked if I was serious. I was very serious.
Sometimes the simplest advice is the hardest to take.
A simple way to keep a fair and reasonable percentage in your startup when getting funding is this.
Argue you require a sufficient percentage to keep you motivated.
Tell them you need enough stake to bring out your best performance. That they are investing in your performance and that this is part of the human make up. Then remind them that you are human.