Calculator to help work out how much equity to give advisors

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Jack Smith
Jack SmithHunterPro@_jacksmith · Serial Entrepreneur & Startup Adviser
The team at Badass Advisors have put a lot of time into thinking about this (see this Medium post: https://medium.com/@markgee/advi... ). That said, I have mixed feelings about this product; as I’m not really a fan of these ‘calculators’ that tell you how to split equity amongst co-founders, or how much equity to give an employee/advisor. I think that there are too many variables involved and every person is different. I think that it’s good for people to have points of reference before making any decision like this. I just wouldn’t take whatever number comes out as the exact ‘right’ figure. Treat it as a guideline.
Nate Legler
Nate Legler@natelegler · Farmer, Founder, Cattle Producer
@_jacksmith good find. Hope they can get the #1 google spot for "how much equity to give an advisor" instead of a 2011 TC article!
Mark H Goldstein
Mark H GoldsteinMaker@markgee1
@natelegler @_jacksmith Bingo! The data online is crazy old..valuations and deal types have changed a lot in the past 5 years :) That said we are getting these legacy authors/authorities onboard with our approach and look forward to sharing that soon
Claude Forthomme
Claude Forthomme@claudenougat · independent economist, writer
I agree with Ben and Jack. I upvoted it though because they don't try to confuse anyone with what their thing does: they say it outright in their pitch: "Calculator TO HELP work out how much equity to give advisors" (I've capitalized the verb that did it for me!) It's just meant to help, not to dictate an outcome!
Ben Tossell
Ben Tossell@bentossell · Services for startups
Agree with @_jacksmith here. No calculator can be determine the equity you should give to advisors. But of course it can give you a few variable bases to go from. Advisors come and go in all shapes and sizes. One may not have a main intention to introducing you to people, but you're at a party with them and all of a sudden you end up meeting someone via them. Do you have to go back to the calculator and re-negotiate? No calculator will be able to put the % value of an advisor accurately. It is for you to determine. This calculator offers a few inputs but there should be many more for such a decision. But as said before, this isn't meant to be taken as completely accurate.
ryan kulp
ryan kulpMaker@ryanckulp · retired developer turned musician
@bentossell Thanks Ben, spot on. For many startup folks, running a few sentiments through this calculator is a great way to start* the conversation with an advisor, versus finish it. Otherwise you have founders asking founders, "how much should I give ______," and any kind of objective measure is thrown out the window.