Ask HN: Equity in exchange for clients

I founded a company 14 months ago in an industry where it is peculiarly difficult and time consuming to break through.

An established, relatively large business in the same industry has been monitoring my progress.

Today I receive a phone call with an offer: 40% equity of your company in exchange of clients — no money (save a nominal value to ensure compliance).

My immediate reaction is “no” — they are asking me to give out almost half of my company for no money, and essentially become a manager of a now-subsidiary of their business, with all the hassle and none of the benefits that an employee of that business would receive if he or she were a manager. I fee they are approaching me at my weakest because they know I’m desperate to break through.

On the other hand, it could mean guaranteed business and possibility of growth, albeit losing much of my autonomy and decision making: working hard for someone else’s dream.

Have you had a similar situation? What are your thoughts?