How much stake (equity) is an idea worth?

David S. Rose
David S. Rose , Founder and CEO , GUST INC.
6 Dec 2012

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

Gust Launch can set your startup right so its investment ready.


This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.