I was in this exact situation recently with my employer. They offered me equity and capital in order to bring one of my nascent private projects under their roo

I was in this exact situation recently with my employer. They offered me equity and capital in order to bring one of my nascent private projects under their roof. After 6 months of "getting the paperwork ready," they offered 13% of the new company. All of the capital went to the old company to pay for my work. I immediately quit when the terms were revealed but reconsidered after negotiating a bit. Although it isn't quite what I had hoped for, they are paying me a salary, the work conditions are great, the other partners are entrenched in the industry, and I'm not the one taking a risk. They also removed all strings attached to my stake.