I'm exploring the possibility of a working relationship with a startup, very early (I believe 3rd person in the door, not counting advisors). There is a potentially good value and industry-specific fit for both of us, but of course the usual uncertainties.
Looking at going in part time for a ~6 month commitment to test the waters. Based on past experiences, this is long enough to team-build, get a detailed understanding of the problem space, flesh out a technology plan (which seems to be the role I would step into), and most importantly, gauge chances of success. But short enough to live with the possibility of it not working out, risk-wise.
At this stage they haven't raised enough funds to pay for what they need. I was wondering if it is plausible to structure compensation on commercial credit, i.e. something like NET-180, which could be rolled over going forward, on the assumption that they raise operating capital by that 6 month point. (plausible in this case, as they've been working the necessary stepping stones in the system for a year or more already, and are well positioned on the market side of the equation). I feel like this is less of a roulette-wheel arrangement, compared to work-for-equity structure that is so often used.
Is it done often enough to be accepted? Any experiences with this? TIA
