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Re:Ask YC: What's a reasonable share of equity to get as the... by randomhack on Tuesday October 30, 2007 @12:08AM (#74085)
Sorry .. that was just a random thought in my brain .. heres the reasoning in reverse .. assuming the company is worth $50m after an year with a probability of 33% and worth zilch with probability of 67%, and assuming that u have a 2% stake .. expected payout = 0.33 x 50 x 0.02 = 330k.

the estimate was optimistic in my opinion. so i wud say a 2% stake is not worth it. its probably better to spend 1 year building ur own company i.e. one in which u have a significantly higher share.

but of course it still doesnt answer the question i guess

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