Ask HN: How much equity is a good advisor worth?

Re:Ask HN: How much equity is a good advisor worth? by cuchoperl on Tuesday November 16, 2010 @09:57PM (#1912708)

The answer lies in one of my favorite pg's essays: 1/(1 - n)

<pg> You should give up n% of your company if what you trade it for improves your average outcome enough that the (100 - n)% you have left is worth more than the whole company was before. </pg>

http://www.paulgraham.com/equity.html

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Re:Ask HN: How much equity is a good advisor worth? by revorad on Wednesday November 17, 2010 @06:21AM (#1913853)

But isn't "what is the value of n?" just a rephrasing of the OP's question?

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Re:Ask HN: How much equity is a good advisor worth? by cuchoperl on Wednesday November 17, 2010 @07:37AM (#1913989)

Yes, indeed. But IMO this is the way to see this problem. A "typical" range answer (eg .1% to .5%) is not very useful in this case. Alas! I would give Jobs half of my company to have him in my board of advisors.

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