[elad]

Whenever possible, pay cash rather than equity. Cash you can get more of. Equity is limited - there's only 100%. Once you run out, that's done. If it's such a great business idea, than you should all the more want to keep the equity.

Ask yourself this - are you able to find an investor that puts in the 30k you need to hire them for cash, and add more value (advice, connections, more cash, etc.)? How much equity would you give to such an investor? Is it more or less than what they're asking for?

Finally, I'm wary about entering into partnership with a firm that does other things (that aren't investing in start-ups). This isn't like bringing on a full-time partner. It isn't like bringing on a VC/angel investor either. They're likely to have their own agenda, and will only contribute up to a point. They have a business to run that is probably bigger than yours.