Um yeah-- valuation (as most people refer to it) is the process of valuing a company. And no-- valuing an investment doesn't have a number attached to it until

Um yeah-- valuation (as most people refer to it) is the process of valuing a company. And no-- valuing an investment doesn't have a number attached to it until you negotiate one (which is the hard problem that PG refers to). If I invest $100k in your company, sure-- I've invested $100k. But at what valuation? Is your company worth $1m post-money, thus giving me 10% ownership? Or is it worth $200k post-money, giving me a 50% stake? That's the hard part. Regarding investors not being on board... I'd go a bit farther and say that your system is likely a fundraising death-sentence unless you are already a runaway success who can make the rules. No one is going to invest in a company with a shifting cap table and no formal vesting. I'm all for innovation, but I don't think you're buying anything here other than additional risk. In this case, the convention method actually works pretty well.