Is there such a thing as an initial equity picture evaluation service?


2
I am wondering if there is such a thing as a neutral, 3rd party service that provides an outside assessment to help a founding team that is ready to incorporate come to a decision on equity division?
I am well aware of the myriad of opinions and arguments around how to place value on various inputs of founders. This question is specifically about whether anyone knows of any service/consultancy that can provide an outside opinion. I cannot seem to find anything like this so far.

Incorporation Equity Founders Service

asked Feb 20 '14 at 21:32
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Dan Newman
21 points

3 Answers


4

While I haven't heard of any such service, even if one existed, the core issue would be the same... they would likely advise you based on opinions and arguments that they've read.

If such a service did exist, I'd think the things they would look at for the founders are:

  • Time investment each founder is putting in / has put in.
  • Value of the skills each founder has.
  • Which founder's work would result in the most growth for the company.

Most of the factors would be subjective, just like doing this yourself would be.

I would say the best people to advise you on this would not be a consultancy, but other entrepreneurs based on their own experience with their own equity structures.

answered Feb 20 '14 at 21:45
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Chrissie Gray
1,107 points

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Along the lines of what Chrissie said, you could find an entrepreneur / influencer in your niche and have them do it for you. You could offer to get them onboard as an advisor with a 0.5% to 1% stake in the company and kill two birds with one stone.

answered Feb 20 '14 at 21:57
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Nishank Khanna
4,265 points

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What you are talking about is a dynamic equity split approach that attempts to value individual contribution. Mike Moyers grunt fund would be a good place to start - review his "slicing pie" book and if his idea resonates with you, reach out to him to get a recommendation for a grunt friendly lawyer.

answered Feb 21 '14 at 02:10
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Jim Galley
9,952 points

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Incorporation Equity Founders Service