[brudgers]

This won't be the last deal you ever get offered.

There is nothing to suggest that the same opportunity won't be here in a year...particularly with a developer at risk approach. And the fact that they're not throwing a little cash at it upfront means maybe it's not a critical issue (or they don't have the cash).

Based on the idea that you don't have cash in hand, it's hard to see how it meets your immediate needs or allows you to develop your current enterprise.

Just structuring and enforcing a no money down deal itself is going to take time, energy and lawyers. Could those resources be better invested in your startup?

There's nothing wrong with passing on a deal due to timing.

[newstart]

I think you're right. Based on your opinion and the others here, I starting to think structuring it will be more hassle and cost (time and money) than it will be worth.

Might consider just a billable rate to get some cash reserves and build the relationship, but may just pass and cite bad timing. Thanks for your input!

[brudgers]

There's a lot to be said for just sticking to your standard form of agreement.

Taking a project on spec is basically making a loan. Makes sense when there's collateral (or if you're a bank).

When your work product has no value to you, then there's no collateral.

There's no reason to formally "pass." Just propose on terms that meet your goals.

If they take it, you'll be happy.

If they don't, you have still been responsive and that will leave the door open.

Good luck.