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Ask HN: Trust equity promises?

2 points by kbody ↗ HN
Howdy,

2-3 months ago I joined a startup that had & still has some problems. I was promised the CTO position along with some equity & wage on the next round. So I've been doing the work because it's a crucial time, but still nothing on paper, I told them and say to wait a bit more till we get the next funding, since the cap table will change. I've been told some numbers, but they keep changing, and I don't really trust them. Am I irrational to demand that I know what my equity & salary will be and on writing somehow?

P.S: It's not a US company.

Thanks in advance

5 comments

[ 3.4 ms ] story [ 26.2 ms ] thread
brudgers
Having equity means being in business with the other people who hold equity. If there's no trust, it may make sense to question going into business with the other people. The changing offers, and I am assuming that they are becoming less attractive not more [though it really doesn't make any difference when nothing is in writing, and no much difference even then] are not a good sign.

My general experience is that people who enthusiastically let someone else work for free rarely change direction and pay well later.

Good luck.

kbody
Thanks for your reply. It's not really the chiefs that I don't trust, but rather one notorious investor that holds the biggest piece.
brudgers
That might be a less than ideal structuring of ownership. An investor with a track record of businesses where people work for free with nothing in writing may not be an omen of your prosperity.
pavornyoh
No, you are not irrational asking upfront. And get everything in writing. Whether in the U.S, outside the U.S, on Mars,etc.. get it in writing. Better be safe than sorry.
tpiha
You are definitely not irrational to ask all this in writing, i would want to do that from both points of view. Even if it's not legally binding, it's always much easier to discuss promised things when you have them written down in some form.