STARTUPS & DEVELOPMENT
Equity for Development? Here’s How We Think About It at NobleNest
Why We Focus on Upfront Payments Over Equity in Startups
In the world of software development, especially with startups, it’s not uncommon for us to receive offers to take on equity in place of a smaller development fee. We get it — cash flow can be tight for new businesses, and equity can feel like a win-win. We appreciate the offer, and it’s always flattering to be invited into someone’s vision in this way. But as tempting as it sounds, here’s why we at NobleNest typically prefer sticking to our standard development fees.
1. Startups Are Risky — Even the Best Ideas Aren’t Guaranteed
Startups are full of potential, but they’re also famously high-risk. In fact, statistics show that many startups don’t make it past their first few years. That’s not a dig at anyone’s idea or passion; it’s just the nature of the startup world. There are countless factors at play — competition, market shifts, funding challenges, and even just getting the timing right. When we’re offered equity, we have to consider that we’re tying our time and resources to an uncertain future.
