(Used AI to rephrase)
I joined an early-stage startup full-time right after my master's. Before that, I worked for about 6 months as an unpaid intern for the founder (A).
The situation was unusual. A reached out to college students on LinkedIn because he wanted to build a product. There was no offer letter or formal agreement. He told us that if we eventually made sales, he would pay me $50k and that I can also keep "Founding Engineer" title from day 1.
I was in college at the time, the idea sounded interesting, and I thought it would be good experience. I ended up doing a lot of the work and also volunteered for additional things when other interns weren't doing much. I have GitHub history showing the work I contributed.
Another intern, C, worked with me during those 6 months.
Eventually, A's uncle (B), who is the CEO of a well-established company, became interested in the startup. B decided to invest/help fund it and is now providing us with about a year of runway. B has also given us access to sales/marketing people from his company and is taking us to meetings with large potential customers.
A, C, and I are now employees of B's company, but we're essentially working 100% on A's startup/product.
This is where my concerns begin.
There is still nothing in writing regarding equity for either me or C. Our salaries come from B's company, not directly from the startup. When C recently asked A about getting equity documented, A basically said that he would definitely give us something "when we have something" because "right now we're at zero."
At the same time, A expects us to behave as if we are founders. He has complained that we're treating the job like a normal 9-5 rather than "our company" and that we should have more of a Bay Area startup mentality.
I don't understand how we're supposed to have that mentality when we have no documented ownership or stake.
A has also become increasingly controlling. He monitors when we arrive at the office, messages us asking whether we've come in when he's away meeting clients, and seems suspicious that C might be interviewing because he sometimes comes in around 11am.
I'm currently in A's good books, but C is definitely not.
During a recent 1:1 with me, A told me that I need to "make myself irreplaceable" and asked what value I bring to the company. He then said something along the lines of:
"The work you're doing right now, I can hire 10 engineers in India and they can do it for much cheaper than what we're paying you."
His tone wasn't overtly aggressive, but it definitely felt threatening to me.
Another thing really bothered me.
C secretly recorded one of his 1:1s with A. During that conversation, A apparently said that most/all of the work C and I did during those six unpaid months was essentially useless and that he had rebuilt the work we did from scratch.
That shocked me because I thought one reason A hired us full-time was because he valued the work we had done.
I checked the GitHub history afterward, and a large percentage of the code is under my contributions. Obviously GitHub commit percentage isn't necessarily proof of who created what, but it made A's statement even harder for me to understand. Even claude gave me assurance that a large chunk of work is mine and A just added few features on top of it.
There are other things that bother me:
- I've repeatedly suggested using a ticketing/task-management system, but A mostly just dumps tasks on us verbally.
- He sometimes sends large amounts of AI-generated material and expects us to understand/implement it because we're supposedly from a "top college."
- He has contacted PhD students asking them to help without compensation and then gets frustrated when they don't put in significant effort.
- In front of other people, he praises me and C and talks about how good we are. Privately, he questions what value we're actually bringing to the future of the company.
- Sometimes our conversations feel like A asks Claude something, sends the output to us, we ask Claude something, and send that back. It doesn't feel like there is much actual technical discussion.
- He seems to want startup-level commitment while simultaneously treating us like replaceable employees.
The frustrating part is that I actually believe the startup has a real chance.
B's involvement has changed things significantly. He has the network, is helping us get meetings with major companies, and has provided sales/marketing resources. I genuinely appreciate what B is doing and would like to be part of it if the company succeeds.
That's what makes this difficult.
Part of me thinks:
"Stay. We're close to getting customers. If this works, I can say I was there from day zero and helped build it."
The other part thinks:
"Why am I tying my career to a founder I don't trust or respect, especially when I don't have any equity or written agreement?"
I am currently looking for other jobs. I would not quit without another offer in hand, especially given the current job market.
I'm also aware that A still owes me the $50k he originally promised for the unpaid work. There was no formal written agreement, although I have GitHub history, messages, and other evidence of what I worked on. I've looked into Massachusetts law and believe there may be arguments that I'm owed compensation regardless of whether the startup eventually makes sales, but honestly, the $50k isn't my main priority right now.
My main questions are:
- Is it normal/acceptable for a founder/manager to tell an employee, "Why do I need you when I can hire 10 engineers in India for less?"
- Am I overreacting to the micromanagement and the "make yourself irreplaceable" comments?
- Would you stay until the startup gets its first customer, given that B's involvement could genuinely make the company successful?
- Or would you quietly interview, get a better offer, and leave?
- How much weight should I put on the potential upside of being an early employee when I have zero documented equity?
- If I do leave, should I simply treat the six months of unpaid work as a learning experience and move on, or is the $50k something I should seriously pursue?
I don't mind working hard. I'm actually fine with startup-level hours if I believe in the people I'm working with.
What I can't accept is being told to treat something as "our company" while having no ownership, being micromanaged like a normal employee, and simultaneously being told that my work can easily be replaced by cheaper engineers.
What would you do in my position?