[imx]

Question is why founders unable to raise money??? Today it is extremely easy to attract VC/angel money!

If founders are unwilling to accept new money because of greed, valuation too low, contingencies, etc... then yes maybe it is a fair gamble to work for equity... Like if you knew your startup had 99% chance of being acquired in 3 month at 5x over today's valuation, then equity pay makes sense.

However, it does not seem like the case here. Highly likely that all VC/angels had passed,.. hence, follow the money and look for an exit.

To make it easier to decide: ask founders to explain why they cannot raise money. If they bring low valuation as an excuse, ask to show termsheets and make judgement upon that. If they cannot provide this proof - run.

[whatdoido]

Thanks, this makes a ton of sense and I will hopefully get to see the term sheets today

[imx]

If you decide to gamble and stay, then ensure a lawyer to have a look at the paperwork. I can recommend one in downtown SF (email me). When I was in similar situation 5 years ago, this guy helped me for $1oo! :)

[whatdoido]

Thanks for the offer! Looks like too many other engineers bailed and now we are shutting our doors.