[ipaddr]

Your best course of action is to wait until the 1.3 is awarded or not. Your CEO ex-partner understands this and wants your equity before this happens. Why rush? It's in your interest to slow it down.

1% at current valuation will drop as new inventors buy in. Get protection that this amount never drops and try for 10% but settle at 4% non diluting shares.

If the company dissolves you get half of the existing value anyways and that amount is trending up.

The only reason to take the 30k is if you believe the company will drop in value and fall apart quickly. If that's the case you wouldn't be looking for 1% as that would be worthless.

You have to consider taxes. If you sell in less than a year any profits over your investment are taxed at normal tax rates but over a year you pay 15% in the US. Frances has complex rules where holding it for 2 years to 6 years will drop the percent owed.

[biphasic]

I agree that he wants to rush it before the grant comes in.