Startups Stack Exchange Archive

typical equity for someone who has an idea for a company and doesnt know how to do it?

• posted by: user1709076 on 2016-06-16
• tagged: equity, idea, skills
• score: 1

Does anyone know the typical equity for someone who has an idea for a company BUT does not know how to reduce his or her product and/or service to practice?

For example s/he has an idea for a company to sell a chemical solution that does XYZ, but the s/he is not a chemist

Another example s/he has the idea for the business where people use a software program that performs a special algorithm, but s/he is not a software engineer, nor an algorithm designer, etc…

So s/he would need to recruit talent to actually make the idea a reality. Presumably the talent would be paid cash and/or equity to make the business possible

Answer 9494

• posted by: Denis de Bernardy on 2016-06-17
• score: 3

It depends on the context. It could be anywhere between zero (“Cool idea. But what do YOU bring to the table?”) and half (if they tackle everything non-technical), or even more (if they hire gullible youngsters who have no idea of what they’re worth).

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