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« Last post by Veign on October 28, 2008, 08:45 AM »
First, the idea on paper sounds great and something that would produce a mutually beneficial relationship. Both parties happy, one sees their idea come to life, the other gets funding to write code (which is all a developer really wants to do).
Second, the legal/contractual aspect would be a nightmare. Partnerships work only when both parties have two things: 1) A very strong, well written contract and 2) 100% trust. Blind partnerships (where you can't see or shake the other persons hand) will be a weak relationship that will only be as solid as the happiness of both parties. Once an issue comes up (like speed of development, funding the project, project direction) the relationship will breakdown quite fast.
Questions:
- How do you write a contract when parties could span countries/laws - need a lawyer for this
- What happens when one party doesn't fullfill their requirement - either delivering code or funds.
- What happens when the relationship totally breaks down. Who gets what
- Who sells the application and handles taxes and expenses
I'm not trying to burst the bubble, just pointing out some of the issues that will come up and be difficult to handle. Partnerships are one of the most difficult and brittle business relationships to have when starting out on something.
It might be better to have a company that is a kinda of R&D software company that develops and owns applications of various types. Then investors invest in the company, and all applications, while coders are paid from the investment and own a percentage of what they write. The company controls, manages and accepts the legal responsibility of all projects. Its kinda of like your idea except the company becomes the center of everything and investors are not dealing with coders in any way. They are only investing in the company. Coders are not dealing with investors, they are dealing with the company. Maybe the more you invest the more you can influence what project is funded or developed. At the end of the project the company sells, markets and distributes the application.
Anyway, this was only my initial thoughts and may be way off base.
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