A final update for those who are interested. The chosen president of the new startup company didn't stay with the project, and after one last correspondence with me where I said that it's an iffy situation based on the little I know about the venture, the principals couldn't come to an agreement, but did decide not to pursue the venture further.

Thanks to everyone for sharing your thoughts, it actually helped me to move on with other stuff, and not sitting around waiting. It also help me to analyse the business situation more clearly.