I started a hardware company, and we have engaged a contract manufacturer to refine, make final prototypes and manufacture our product. Currently, we are in the process of making final prototypes, which we can then take to kickstarter and raise money from there.
However, I do not have all the funds to make the final prototypes before Kickstarter, so the manufacturer has offered to take some equity in return.
Has anyone been in this position? What do you think of this option? If it is a fair option, how much equity should I offer?