I was approached by a startup to do some work developing their product. They do not have revenue or funding yet and offered to pay a “market” salary for a contract period that would be 100% deferred until funding was raised. This is obviously a very bad setup for me since I bear all the risk.
I am trying to come up with potential counteroffers where we could still work together, but I have limited knowledge in some typical structures. My lawyer has some experience in dealing with these contracts, but I would like input from people as to what has worked for them historically.
I have proposed having part of the cash paid as work is done and part deferred and also having some kind of equity component.