That first job I guarantee is abnormal for the area. The same thing happens around here (Orange County, mainly Irvine) These venture capital funded companies offer abnormal pay, unlimited PTO (you read that right) No cost PPO health insurance (Not Kaiser, the good stuff) and cheap Dental, 401K's which match at least 6%, free lunch, possible a small gym in the building, mileage if travel is any distance. The downside is, will the job be there in 1-2-3 years time.
It's Venture Capital funded. I make parts for a couple of companies in Irvine that are Venture capital funded, and the pay and benefits are abnormal to the area. Which is good until the funding runs out. Then there's layoffs. They get more funding, re-hire a few, funding runs out, layoffs again. Happened to one of my customers. Which at one point left me high and dry with some large invoices unpaid. Came down to "we're doing a big demo for the Navy, if it works out we'll get funded. So if you make these parts we need, then you'll be the first to get paid. If you don't I understand" I did the parts taking a risk I wouldn't get paid. They had a successful demo, and got more funding. I got paid. This was year ago. They just laid some guys last week. Ran out of money Luckily I have no outstanding invoices.
I used to rent for 25+ years.. great decision.
VC funded is also fine .. but they then need to pay VC prices.
AKA they are probably unlikely to exist in 24 months.
Endless possibly heavy legal hassles may ensue.
You as the sub making parts is not part of the VC chain and not expecting 100x equity gains, no ??
Therefore, the VC funded company pays the freight for now, at 4x, just like they pay workers at 100$++.
Why should the machining company be funding a VC funded company, with widgets at low rates ??
If You get a 10-20M$ binding future contract, at decent rates, this might be a reason.
With stock as collateral, and debtor in possession financing explicitly included.
If they don´t agree to this, as they probably wont, this generally means that they think your work is near worthless to them and their likelyhood of ultimate success is quite low in their opinion.
SO, if they don´t think they can pledge their word, aka stock, do You wish to finance them ? Why ?