l’ve just been approached by someone heading a startup offering company shares in exchange for part-time unpaid work. He’s mentioned cash won’t be paid until they’ve acquired a seed round of investment. Are these offers usually a scam in the startup world? Or is this typically normal? Thanks
Not always, but here are some signs to look for:
- Are they experienced in raising capital? Have they had success in past ventures? Or first rodeo?
- Have they offered you any paperwork that explicitly outlines the agreement? ex cash for hours
- What research have you done on your part with the solution in the market?
- Have they pitched to you how and why this will be a success?