4 ms·
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
by cuchoperl 16y ago
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 http://www.paulgraham.com/equity.html
- revorad 16y agoBut isn't "what is the value of n?" just a rephrasing of the OP's question?
- cuchoperl 16y agoYes, 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.