Refusing 60% equity is nothing like refusing free money. Think of it this way. I start something. I come to you and give you 100% of it. 100%! You take it, code, contacts, everything.
Now, you need a co-founder. Hey, what about me? What are you going to offer me? You can pick any number you like, but the point is that if I really am the best person to be your co-founder, you have motivation to offer me a substantial stake in the going concern.
So don't think of the author as "giving away" equity, think of him as taking 100% equity and then granting the CEO and original founder 75% to motivate him so as to maximize the value of the equity he keeps.
You might pick a different number, 50%, 49%, whatever, but you get the idea.
In other words, a deal is only good if it's good for both parts.
I would offer a potential partner 100%, but make clear I then wouldn't do any work myself if I didn't got a share. If both are equally dependent on each other, then a 50/50 split sounds just.
That's interesting, but I think wrong. First, a founding CEO doesn't need 75% versus 50% to keep them motivated. Second, if your are both going all-in, and your partner thinks you are worth 60%, you'd better have good reason to think you're only worth 25%. I could understand talking yourself down to 50/50 or 40/60, but 25%? That's makes no sense at all.
As I said, "You might pick a different number." I'm only arguing that declining all the equity you are offered isn't a WTF in and of itself.
As for the specific numbers... I really couldn't say anything without knowing the parties involved. Maybe these are completely fabricated to make a simple point, which is that he doesn't want to be lowballed, and he isn't outrageously greedy either.
Now, you need a co-founder. Hey, what about me? What are you going to offer me? You can pick any number you like, but the point is that if I really am the best person to be your co-founder, you have motivation to offer me a substantial stake in the going concern.
So don't think of the author as "giving away" equity, think of him as taking 100% equity and then granting the CEO and original founder 75% to motivate him so as to maximize the value of the equity he keeps.
You might pick a different number, 50%, 49%, whatever, but you get the idea.