Software development for equity
We build your MVP or first product version, fully or partly, in exchange for a stake in your company. You keep your cash for customers and growth, and we are paid only if the company succeeds.
Who development for equity is for
This format suits early-stage founders who have done the market work and need the product built. It is not a way to get an idea built for free.
- You have a validated problem and early demand, but not enough funding for a full build
- You are a non-technical founder working on the company full time
- You plan to raise a pre-seed or seed round and need a working product first
- The first release can be defined and shipped in a few months
- You are ready to share ownership with a partner who takes real risk
What each side contributes
Our build
Scoping, UX/UI design, mobile or web development, backend, QA and release of the first version. The volume is agreed upfront and tied to milestones.
Our product input
We help cut the first release down to what proves the business, and take part in product decisions after launch. You get a partner who questions features, not just builds them.
Your market work
You own sales, customer interviews, marketing and fundraising. The product only becomes valuable, for both of us, when you bring it to customers.
When it is not the right format
- The idea has not yet been discussed with a single potential customer
- The founder works on the project part time with no plan to change that
- The product needs years of R&D before anyone can pay for it
- You want to keep 100% of the company: a fixed-scope contract is better
How the stake is set
There is no fixed percentage. The stake is agreed after we evaluate the project and depends on a handful of factors that both sides can see. A company with paying pilots and a small, clear first release carries less risk for us than one at the idea stage with a large scope. Part of the work can also be paid in cash, which lowers the equity share.
- Stage and valuation of the company, and existing investors
- The scope and estimated volume of work we contribute
- The split between cash and equity if you pay part of the build
- How much of the risk is already removed: traction, pilots, revenue
- Whether we stay on after launch and in what role
Vesting, milestones and legal form
Our stake is earned as the work is delivered, not granted upfront. Typically it is tied to milestones such as a clickable prototype, a working beta and a public release, with vesting and sometimes a cliff, so that neither side ends up owning something it has not earned. Depending on the jurisdiction and your plans, the stake can take the form of shares, a SAFE or a similar convertible instrument, or options. The structure is proposed by both sides’ lawyers and fixed in a written agreement.
- Milestones with clear acceptance criteria for each stage
- Equity that vests as milestones are delivered
- A legal form that fits your company and future rounds
- No surprises for investors in due diligence
IP, and what happens if the project stops
All code, designs, accounts and documentation belong to your company from the start. We receive equity for our work, not ownership of the product. If the company pivots, pauses or closes, the agreement defines what happens: unvested equity is not earned, work already delivered stays with the company, and there is a clear procedure for handing over the repository, infrastructure and documentation.
- IP assigned to the company in the agreement
- Repository, cloud and store accounts in the company's name
- Defined exit rules for both sides
- A documented handover if a new team takes over
How development for equity works
Application and call
You share the idea, market evidence and team. We discuss whether equity is the right format or whether another one fits better.
Evaluation and scope
We define the first release together and estimate the work. You get a scope document you can also use with investors.
Terms and agreement
We propose the stake, milestones and vesting structure. Both sides’ lawyers review, and terms are fixed in a written agreement.
Build by milestones
We design, develop and test in short iterations, with a demo at each milestone. Our equity vests as each milestone is accepted.
Launch and next steps
We release the product, support the first users and agree how we continue: equity partner, technical partner or a regular contract.
Ways to structure the deal
Full equity
The first release is built entirely for a stake. Reserved for projects with strong validation and a compact scope.
Cash plus equity
You pay part of the work and the rest converts into equity, which keeps our stake smaller.
Paid discovery first
A short paid discovery phase defines the product; the equity decision is made once the scope is clear.
Reviews
We treat each client and his project with love.
Revol team continues to streamline the client’s development capabilities through their high-quality work and reliable support. They communicate effectively and exhibit a strong understanding of the client’s needs and business.
Tomas
The work from Revol, have fully met expectations and satisfied the client. Their fresh approach and ability to remain available for support have been valuable assets. Customers can bring them on for a communicative, client-oriented team to achieve their goals with.
Andrey
Frequently asked questions
Will you build my app for free in exchange for equity?
It is not free: you pay with ownership of the company, which may become worth much more than the cost of development. That is why we select projects carefully and why the stake is tied to the work actually delivered.
What percentage of equity do you usually take?
It depends on stage, valuation, scope and how much of the work is paid in cash. We propose a figure after evaluating the project and explain how we arrived at it, so you can compare it with the cash cost of the same work.
Will investors be put off by an agency on the cap table?
Investors care that the stake is proportionate, vested against real work and documented properly. A technical partner with skin in the game is often seen as a plus, especially when the founders are non-technical.
Can we buy back the equity later?
A buyback option can be included in the agreement, for example after a funding round. The conditions and valuation method are agreed upfront so that nobody negotiates under pressure later.
Who decides what gets built?
You own the product vision and priorities. We own the technical approach and give an honest opinion on scope. Disagreements are resolved by the process fixed in the agreement.
What if the startup fails?
Then our equity is worth nothing, and that is the risk we accept. The code and everything built remain with the company, and the agreement defines how the partnership is closed.
Tell us about your project
Describe the task in a few lines. Within one working day we reply with questions or a first view on scope and cost.
Prefer email or a call?
welcome@revolsource.com
+38 097 662 23 20
Revol Software OÜ, Tallinn, Estonia. Our team is distributed around the world.
Join our team
Send your CV to career@revolsource.com