You say that you are the first hire. How many people are there besides you and the founder? If it's just the two of you, 2% is on the low side, but I wouldn't necessarily walk away from it. If there are others who were there pre-funding, then 2% sounds about right.

Other things to consider:

- What do you think of the product you're building? Are there others like it? What is unique about this one? Would you use it? Is there a voice in the back of your head telling you saying that this is great, or that this is dumb, or that it has fatal problems? Listen to it and think about what it's telling you.

- Similarly, what is your instinctual reaction to the founder? Is he focused, or does he have shiny object syndrome? What value does he bring to the venture, other than having convinced someone to fund it? Does his background and track record suggest that he can make this work? Or that he's worth betting on?

Good luck.