I get this trope of valuing equity at $0 because a lot of people have been burned, but it’s bad advice.
The fastest way to wealth is through equity.
Yes, it’s hard to value but that value is not zero. Spending effort trying to value it is worth it, and picking companies where you think the equity will be valuable is worth it.
Also worth considering the character of the founder and the other directors. There’s a lot of ways to get screwed out of equity, working with good people is important.
The fastest way to wealth is through equity.
Yes, it’s hard to value but that value is not zero. Spending effort trying to value it is worth it, and picking companies where you think the equity will be valuable is worth it.
Also worth considering the character of the founder and the other directors. There’s a lot of ways to get screwed out of equity, working with good people is important.