Thoughts on startups by investors that
fund them & entrepreneurs that run them

How much stake (equity) is an idea worth?

It depends on the quality of the idea. I’m a firm believer in Derek Sivers‘ calculus, which goes like this:

AWFUL IDEA = -$1
WEAK IDEA = $1
SO-SO IDEA = $5
GOOD IDEA = $10
GREAT IDEA = $15
BRILLIANT IDEA = $20

The real value, of course (as other answers here have noted), comes from executing on the idea. And to see how that calculation works, check out Derek’s classic, seminal article on the subject:

http://sivers.org/multiply

*original post can be found on Quora @ : http://www.quora.com/David-S-Rose/answers *

Written by David S. Rose

user David S. Rose Founder and CEO,
Gust

David has been described as "the Father of Angel Investing in New York" by Crain's New York Business, & a "world conquering entrepreneur" by BusinessWeek. He is a serial entrepreneur & Inc 500 CEO who chairs New York Angels, one of the most active angel investment groups. David is also CEO of Gust.

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