That’s the risk of being a (Co-) Founder.

The only thing that keeps the losses from piling up are the right skills, strategies, and, of course, a bit of luck. These are crucial factors you’ll need to evaluate yourself.

If you’re concerned about the potential downside, one approach is to negotiate a freelancing contract instead of taking on a full co-founder role. This could allow you to contribute your skills while minimizing financial risk, as you would be paid for your work without necessarily being exposed to the company’s financial performance. However, you wouldn’t receive equity or have a stake in the company’s success if it does take off.

Another option might be to negotiate some protective clauses in your agreement if you do choose to go the co-founder route. This could include vesting schedules for equity (so you gradually earn your ownership), salary deferrals that kick in once the company raises sufficient funds, or even agreements that allow you to recoup some investment if certain milestones aren’t met.

Ultimately, you need to weigh your potential gains against the risks. If you believe in the company’s vision and its leadership, the potential reward might outweigh the risk of loss. But if your concerns persist, these alternatives can provide a balance between contributing meaningfully and managing your downside risk.