Here would be my concern, if they cannot match compensation, then they may not have the resources to be in the VC market. I do not know your compensation but I

Here would be my concern, if they cannot match compensation, then they may not have the resources to be in the VC market. I do not know your compensation but I am going to assume somewhere south of 200k. If that is the case and there is truly 8 digits of investment equity then there should be no issue with carrying that kind of administrative burden. Now I know that those funds are separated from operational funds, but in a VC firm we are usually talking about a small amount of investors that enter the fund together, to claim that the funding is not there and cannot be obtained, to fairly compensate you would be a little disingenuous. I am not implying that they did, but if they do, I would question it in my mind. Keep in mind that it will be years before a first venture is liquidated for any return, so you could be at that compensation level for the better part of a decade with no bonus due to no equity positions being liquidated. While it has the potential to make you rich, you will also take a hit for a long time with no guarantee that any venture will ever pay off. I walked from a similar offer several years ago after an exit and for me personally if I where in your shoes I would walk to. If I had taken the offer I had I would still be waiting on the big hit as the group that made the offer to me, is now in the first stages of exiting some relatively small investments. The offer that was extended to me was around the 2002 mark so I would have waited 9 years for any payout.