Re:Ask HN: How much equity to give away for $100k?
by brk on Wednesday September 02, 2009 @05:47AM
(#799798)
An oversimplification to illustrate the concept:
Shares = investment amount/current valuation
There is no universal answer. If your version 1.0 is likely to earn us $1B in sales the first year you would give away a hell of a lot less than if your version 1.0 is a freemium app targeted towards furries to help find local dry cleaners. It all depends.
Re:Ask HN: How much equity to give away for $100k?
by hwijaya on Wednesday September 02, 2009 @09:27PM
(#801545)
Thanks about "there is no universal answer". I was thinking if there is some "average" equity that people are giving out for 100k. Example, in YC, it's 2% - 8%.
Shares = investment amount/current valuation
There is no universal answer. If your version 1.0 is likely to earn us $1B in sales the first year you would give away a hell of a lot less than if your version 1.0 is a freemium app targeted towards furries to help find local dry cleaners. It all depends.