Sweat Equity

There is a cliché that doctors at parties being asked for diagnosis in awkward social settings. In software development, the cliché comes in the form of an opportunity to develop someone’s app idea (for free). The script goes like this “I have a great idea, you just have to make it and we make millions.” The lucky software developer gets to do all the work, the product commercialises itself, and endless profits are split evenly. In reality, the notion that spending months writing code translates to cash is ill conceived and you’re unlikely to find anyone who would agree to these terms. The proposed partnership is not equal because the person with the idea hasn’t any skin in the game.

If you have a great idea but won’t invest in it yourself, then you’re unlikely to convince anyone else to invest either. This applies to angel investors, and any other form of investment including sweat equity.

For us, sweat equity means that we may sometime offer reduced cost services in exchange for convertible debt or ownership equity. If you have a great idea then we will be excited to work with you to bring it to life, and if we have some skin in that game too then so much the better.

If you’d like to speak about investment in your app business please call our Perth office on 1300 DAPPER from within Australia, or submit an online request for a meeting or consultation via our Contact page.

The next topic discusses R&D tax incentives, essential reading for anyone with an innovative app idea.

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