u/Embarrassed_Key_8437

I’m currently building a SaaS startup and I’m in talks with a really strong software development company that could help me develop the product.

Since I’m still an early-stage startup with a relatively small budget, we’re discussing two possible collaboration models:

1. Revenue share
2. Equity in the company

I’d love to hear opinions from founders or developers who’ve been in a similar situation.

Which option do you think is usually better long-term?
What are the pros/cons or red flags I should think about before agreeing to either?

For context:

• Early-stage SaaS startup
• Limited upfront budget
• Long-term collaboration potential
• I want both sides to stay motivated and aligned

Would really appreciate any advice or experiences.