I recently was in contact with someone advertising a position in a new startup company; the position would be the lead developer for the product, and eventually transition to the IT Manager. However, it is “sweat equity”, meaning not a paid position but you get a percentage of ownership in the company (what percentage I am not sure yet). I would not be required to leave my current job, and I would not be required to put up any sort of investment.
What worries me is that the founders are unable or unwilling to pool together even some resources to come up with even a small salary to compensate the right person. Also, the medium with which the position was advertised is a little unusual, not where I would expect a serious startup to look for what amounts to their initial CTO. I’ve made some initial inquiry with one of the principal founders; I’m now determining if I wish to pursue it further.
Has anyone encountered a situation like this and, if so, what did you do? On one hand it seems like a great opportunity and if the product does take off, could provide a great return. I am young (26), so the idea is appealing to me, but I’m not sure I like the idea of giving what might amount to free work with my only compensation being equity that will be worthless if things don’t take off. I also would be working what amounts to two jobs as I cannot quit my fulltime position without being able to earn some form of income.
