5% of 50M = 2.5M 5% of 20M = 1M 5% of 10M = 500k 5% of 1M = 50k $100k liquid good if their valuation is less than 2M, otherwise it makes fiscal sense to hold

5% of 50M = 2.5M 5% of 20M = 1M 5% of 10M = 500k 5% of 1M = 50k $100k liquid good if their valuation is less than 2M, otherwise it makes fiscal sense to hold onto it (or sell once it hits open market), unless you think that it is not a reasonable investment. Really, though, if you are not interested in the future of the company, sell it to someone who is working on it. Figure out what it's worth at valuation and take 20-70% of that, if you need some range parameters. And like I said sentence one: $100k liquid good.