I am the founder of Ideas2It(www.ideas2it.com) which has a onshore/offshore team. The idea is to be technology partners for startups to bring their ideas to market without taking too much funding. A good case of this model is www.scoobydeal.com, a rails site which we implemented from concept to completion in just 3 months.<p>Though I am willing to share the risk on ideas I believe in, by taking part of the compensation in equity, I am being repeatedly asked to do the whole work for equity or deferred payment.<p>There is a particularly interesting(very interesting technology, good background of the founder,etc) project on the table, which I am being asked to do on deferred payment. I.e. payment on Angel funding, till then 1% interest after first 6 months.<p>What are the pitfall of such a deal? If I go for it, how should I structure the deal?
If you're doing it for free, you're a co-founder. As such, you should have a lot of founder equity. 30% sounds about right - don't forget it might get diluted later. And in that case, don't work on it unless it's a business you do want to start, obviously - and of course you can't start several of them at the same time.<p>If they want you to do it for free without giving you a large chunk of equity, fuck'em.<p>If they want to pay you, payment is within 30 days after the invoice is sent, not "when we have cash". That's a joke, not a contract.