--- title: "Equity vs Revenue Share vs Cash Explained | Build14" description: "Different payment structures create different incentives. Here's how to evaluate what works for your situation." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "ProfessionalService", "name": "Build14", "url": "https://build14.com", "logo": "https://build14.com/favicon.png", "description": "Build14 designs, builds, and ships production-ready MVPs in 14 days. 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Each creates different incentives and outcomes. ### Equity **How it works:** Technical partner receives ownership stake in exchange for reduced or no cash payment. **Typical terms:** - 5-20% for MVP development - Vesting over 4 years, 1-year cliff - Subject to dilution in future rounds **When it makes sense:** - Partner will stay engaged for years - You can't afford to pay cash - They bring more than code (network, experience, credibility) **Risks:** - Cap table complexity for future fundraising - Misaligned incentives after initial build - Hard to unwind if relationship sours ### Revenue Share **How it works:** Technical partner receives a percentage of revenue until a cap is reached. **Our terms (transparent and specific):** - **Launch Track:** Lower upfront cost + capped revenue share - **Funded Track:** Higher upfront cost + lower revenue share percentage, also capped - **Exit option:** Buyout available at any time to end the revenue share - No minimums, no penalties—you only pay when you earn **When it makes sense:** - You want to preserve equity for fundraising - You're confident the product will generate revenue - You want aligned incentives without giving up ownership **Advantages:** - Partner is invested in your success - Lower upfront cost preserves capital - Clean cap table for investors ### Cash (Fixed Fee) **How it works:** Pay for development upfront or milestone-based. **Our terms:** - **Launch Track:** Fixed fee (14-day build) - **Funded Track:** Custom scope (14-day accelerated build) **When it makes sense:** - You have runway or can fundraise - Scope is well-defined - You want maximum flexibility post-launch **Advantages:** - Clean transaction, clear end - No ongoing obligations - Maximum control ## Comparing Real Scenarios **Scenario A: 20% equity for MVP** Assume MVP takes 2 months, startup raises Series A at a strong valuation. - Partner's share value: Potentially millions - Effective hourly rate: extraordinarily high (assuming 40 hrs/week) You just paid millions for a product you could have bought for a fixed project fee. **Scenario B: Revenue share with us (Launch Track)** Assume startup hits significant revenue in year 2. - Partner receives capped amount (cap hit) - Founder retains full equity - Clean cap table for future fundraising **Scenario C: Fixed fee** - Partner receives fixed project fee - Founder retains full equity - Clean transaction, clear end - No ongoing payments even if you hit massive revenue ## Questions to Ask Before agreeing to any structure: 1. **What's the realistic upside?** Model equity grants at various valuations. 2. **What happens if we part ways?** Understand vesting, cliffs, and buyback terms. 3. **How does this affect fundraising?** Investors will scrutinize your cap table. 4. **Are incentives aligned?** Equity partners should stay engaged; cash partners deliver and leave. 5. **What's the effective cost?** Compare all options at realistic outcomes. ## The Founder's Framework - **Give equity** to people who'll be with you for years and contribute beyond code - **Offer revenue share** when you want to preserve equity but can't pay full upfront - **Pay cash** when scope is clear, you have runway, and want maximum flexibility ## The Uncomfortable Truth Most "equity for MVP" deals favor the builder, not the founder. They're betting on your upside with limited downside. That should make you pause. * * * You don't have to figure this out alone. We never take ownership of your company. Fixed fee or revenue share with a clear cap—your choice. You keep 100% of your company. We build it right. That's the deal. Ready to put this into practice? Learn why we don't take equity [Learn More](/no-equity) Related topics: equity vs revenue share startup equity no equity technical partner startup deal structure technical co-founder equity startup partnership terms revenue share ## Continue Reading [ ### MVP vs Prototype: What Investors Want Founders often confuse prototypes with MVPs. Here's why the distinction matters when you're raising capital. ](/insights/mvp-vs-prototype-what-investors-actually-want)[ ### The Fractional CTO Decision Framework When does hiring a fractional CTO make sense? A practical framework for founders evaluating technical leadership options. ](/insights/the-fractional-cto-decision-framework) ## Let's build something together Turn insights into action. Discuss your project with us. [Start a Conversation](/book) [View All Insights](/insights) [![Build14 logo](/assets/logo-icon-DntukHz5.png)Build14](/) From idea to live product in 14 days. [hello@build14.com](mailto:hello@build14.com) ### Services - [Build an MVP](/build-an-mvp) - [Startup CTO](/startup-cto-without-hiring) - [Internal Tools](/internal-tools-development) - [Revenue Partner](/revenue-partner) ### Resources - [From Idea to Product](/idea-to-product) - [How It Works](/how-it-works) - [Insights](/insights) - [Why No Equity](/no-equity) ### Trust - Full ownership retained - No equity required - Revenue participation ends - Everything stays in your hands © 2026 Build14. All rights reserved. [Privacy](/book)[Terms](/book)