I think the answer is all of the above. Are they pre funding? More risk = closer to 5%. Are they on their third startup with two successful exits and raised $1.

I think the answer is all of the above. Are they pre funding? More risk = closer to 5%. Are they on their third startup with two successful exits and raised $1.5 - $3 mil in Angel already? 1 - 2%. But you're in the right range for sure. (this is the first true outside hire)