I am planning to join a start up (LLC) in a management role. They are in the midst of raising series A, the have agreed to pay me an hourly salary with a cap on the hours, if I go over the hours, they will pay me back when they get investment. In addition, they are offering me a % commission on deals + 5 basis points equity (up to 3 deals) per signed deal I bring in. I will be working as a consultant, not employee.
If I go over capped hours per week and am owed a certain $, which they have agreed to pay me when investment comes in (I lose all if no investment is raised) - can I ask for this amount to be added to a capital account in my name? This would make me an "investor" in the company, correct? Rather than, just a consultant they owe money to.
How do I can find out the value of 5 bps vs. the entire pool? What is my % share in the company? Should I be asking them for cap tables so I know what my value will be? I'm not sure how bps translate to % and don't completely understand how LLC works.
I would one of the first main senior mgmt people to join the company before series A - what should i keep in mind to make sure i am getting a fair deal?
Is it possible to ask for undiluted?