If this isn’t appropriate for this community then please help me find somewhere better to ask for advice about this. I’ll try to be as detailed as possible without making it easily discoverable who the company is since it’s a pretty niche industry.
I work for an agricultural startup and while not one of the founders I have been here since almost day 1 and I have a decent chunk of equity from that. We have been operating our proof of concept for about two years which puts us about 6months to a year behind our initial schedule for expanding into a profitable business. This is partially due to covid as that made investments hard to come by for a bit and partially due to slow money raise.
Our proof of concept burns money at this point but that’s largely because of the production to highly skilled labor ratio in the initial startup that won’t be present when we get to scale (3 masters degrees and 3 undergrads that will be managing roles over low skill labor as we grow).
Right now we are coming up on an approximately 30 day gap in funds between what we have and when some significant money through a crowd funding source is coming in. We ran into something similar about 6 months ago and the board bridged us on that but has said that they won’t this time.
Labor is a large part of the monthly deficit that we have and as one of the two highest paid employees I am considering the option of offering to defer my pay until the next round of funding comes through. I’m willing to do this to help the CEO out of a pinch and because I believe in the project, but I would want to be compensated for it. I think that asking for double pay once the money comes through would be fair as an additional months salary isn’t really that significant to the business but is to me.
Personal finance wise I would be fine without the money temporarily or else I wouldn’t be considering this. I also know that a few of the others wouldn’t be, so I’m willing to do this to help ensure they get paid through this.
I realize after typing this out that it’s pretty terrible loan terms for the company at 100% interest in 30 days, but I have no experience with this. I don’t know if this is even legal/moral to suggest but that’s why I’m here. Assuming it is kosher is there a way that I should phrase it when discussing it with my boss (and in the follow up email as this will be discussed in person)?
Any input or advice on this would be greatly appreciated. Feel free to ask for clarification on anything. Also,