We are running out of money and so my bosses chose to not pay themselves and myself a salary. What can I do to get reimbursed for my work at the startup? Currently there's not much work for me but if the other two guys manage to close the ongoing funding round in approx. 3 months they want to hire me full-time.
Can I demand equity from them in advance to assure my piece of the cake once the money has arrived? The answer they gave me to this was they would give me the shares once the round is closed. But this is only good for them, not for me. Right?
I am very new to start-up things and really don't know how to act.
Feel free to share your experiences with getting shares as one of the first employees in a start-up.
EDIT: I really like the idea of the company and I'm very interested to getting the idea to market. ... But not at my cost! Already having a start-up like salary is harsh sometimes. And then still being bargained down to a minimum, hearing promises I know for sure will not be made real after the round is completed, is just annoying. If I would not like the idea that much I would have already quit today.
This may be illegal depending on your location. If you are hired as a paid employee/contractor, you must get paid.
"they would give me the shares once the round is closed"
The round is probably never closing. Most startups like these go bust and the promise of "we will pay you once we close a round" is wishful thinking at best and dishonest at worst.
"Currently there's not much work for me" "I am very new to start-up things and really don't know how to act."
Leave. There is not much there. The 2 founders will most likely quit on this in the next few weeks or couple of months max. They are at a dead end. If they could have raised money, they would have already. Only reason you possibly stay is if you truly believe in this idea and love the product and founders. Highly unlikely based on your post and level of experience.
Don't fret, just quit and find other work. I am sure plenty here on HN have open positions, click the "jobs" link at the top and try that out (https://news.ycombinator.com/jobs).
If you don't do it as soon as you can it will take a mental toll on you (self-esteem issues e.g. how could I be so gullible etc...) In a sense you already know, but you are still lingering for the very low probability of high return, equivalent to betting prime Tyson losing against Hasbulla, it could technically happen but it will not. It's time to start ONLY listening to that part that ALREADY KNOWS and follow its advice.
QUIT, bitch
Contact whoever does wage theft prosecutions in your area if you've done work and haven't been paid.
If you've been paid until now, and are otherwise happy, tell them to let you know when they've got money and you'll consider coming back. But, don't promise to come back, and don't accept any promises from them. If they ran out of money before they got funding to continue, then any funding they get isn't going to be on good terms, and they may not be able to keep any promises they make.
It's reasonable for people with founder stock to decide to not pay themselves when money is tight, but not reasonable to stop paying employees (= without founder stock).
If you think the company has a future, insist on founder stock now. Otherwise, there are lots of other promising startups with adequate funding.
It makes no sense to get a 1% equity when you are making the same sacrifices and taking the same risk as them. They may say they are able to raise money, but you are able to build the product. And unless the product reaches product-market fit, there is no business and no company.
You could be working at 100 other well-funded or established companies and learning a lot and making a lot. Do not underestimate yourself.
Once you stop getting paid, forget about it: look for another job. It takes gross negligence to get into that situation in the first place.
As founders, they do have the option to not pay themselves. But they still need to pay you. Make sure they pay for every hour of your time, out of their own personal savings if necessary.
And look for a job in the meantime. You are, after all, unemployed. Whether you realize it or not.
What can I do to get reimbursed for my work at the startup?
The answer they gave me to this was they would give me the
shares once the round is closed.
Your personal risk tolerance is up to you, but the founders cannot have it both ways. They must compensate you in cash or equity, not just set up promises for the future. There may be legit reasons they cannot give you equity or cash - but in that case, walk out with dignity and tell them to call you when they are able to give you fair compensation.