| [Disclaimer: this is advice from the internet] What is the takeaway from this as a first impression? I have two premises in regard to business deals: 1. People whose first preference is to screw me will implicitly but probably not explicitly notify me of the fact before hand. My belief is that most everyone tries to find a way to rationalize their future actions in order that they can live with themselves. Imagining that I was given caveat emptor then excuses the future action. 2. What makes a good business deal is that both sides desire the prosperity of the other...or the person calls you up to make you rich. In regard to the outlined facts: The principals tried to take advantage of your potentially dire circumstances. The reason they did not succeed is that you had the option of turning down their offer. As I've said before, the value of non-controlling non-preferred stock in a privately held company is whatever goodwill the controlling interests assign to it. If and when there's serious money on the table, you've had your caveat emptor and you won't have any say in how things go down. So let's treat it as straight up employment not a business deal. 1. A 1% stock offering means the hire is being made for the position rather than for you as an individual. That's normal, and ok if you're ok with it. Don't kid yourself that this is about owning a piece of the company. It's a straight compensation deal. 2. The stock option is to their advantage in hopes of convincing you that your interests align with theirs. They do, but only under employment semantics. 3. The worst thing an employer can do is fuck around with someone's paycheck and livelihood. It's not a joke, now; never has been; never will be. [Please see disclaimer] If you need the job and can stomach it, take it. Keep searching for something better. Quit the moment a check bounces. Treat it as a job. Forget about the equity. If you have something better in the works as a job, walk away. Remember that a good deal is one where the person isn't actively trying to prevent you from becoming rich. There are many red flags. Find something else if you can. Good luck. |