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That's just completely faulty logic for so many reasons: a) Future value is not equal to current value. b) $10M exit in the future is not set in stone. It'll

That's just completely faulty logic for so many reasons: a) Future value is not equal to current value. b) $10M exit in the future is not set in stone. It'll take longer and be more painful than you think it will be. The chances that you'll have a $10M exit are low. You're doing well if you're pocketing $1M. c) People won't fund you for free. You're giving up a chunk of your company. At 20% of $10M, that's $2M you're giving up. If you're getting more capital, you can expect to give up more. d) Having full control and agility is more important than most people realize unless you have some really smart entrepreneurs who are your investors guiding you.

jsatok 15y ago
Agreed, and chances are that you won't create a $10M company on your own. Include a reasonable ESOP, a chunk for investors, etc., you're at a lot less than $10M. Also, building a $10M startup isn't exactly guaranteed. When you factor in the future value, expected exit, dilution and the risk, I think it'll work out to a lot less than $1000/hour. But I don't think that's such a bad thing. I'd bet if you talk to most founders, they'd tell you that they didn't start their company with a big number in their head - they started it because of passion, drive and the desire to make a difference. $1000/hour consulting doesn't equal that sort of lifestyle.
wavephorm 15y ago
But it gives you a basis for further consideration. Surely nobody will pay $1000/hr for your services. If they pay $100/hr and you think you have a 1 in 10 chance of exiting for $10M then maybe that's break even. Really, if you don't think your startup is going to be worth even $5M at some point in the future, I think you have to take a hard look at what you're really trying to accomplish.