1000 hours is half a year of work. Do you have an indication that this guy is not a bozo? Because I have one piece of evidence which strongly suggests bozo: he's trying to get a technical cofounder for 5%.
Until 1000 hours have elapsed, there's more work to do and they're seeing signs of promise but still don't have the budget to pay you (or someone else). When your chances of seeing any return on the work you've already done depend on their startup being successful it's going to be very tempting to do more unpaid work to try to make that measly 5% stake worth something.
If you were the first paid hire at a startup you'd probably also get a low single digit equity stake. And six months salary for six months work.
[1]The other way it's quite different from being a technical cofounder is that presumably you don't have any influence over any strategic decisions they make.