"Additionally, if the company gets funded, the very first thing that will happen is you will be fired or otherwise relieved of your position and they will hire an experienced CTO who will be paid a lot of money. This is the smart money move for them and a pat on the back for a job well done is all you will be likely to get."

If that was the situation (and I agree, potentially likely) - but yet still an option for him, I would have him attempt to write in to the contract that on funding, he would be back paid $x, up to a full amount or some portion thereof that he would have earned...