Entrepreneurs Don’t Value Help…
So us entrepreneurs tend to not properly value outside help. We don’t like sharing equity. We don’t realize that if we give someone 1% and that leads to us getting an investment at a 5% higher valuation or selling the company for 1.5% more we just turned a profit on giving away equity. It’s weird, other professions and late stage companies always value help. Did you know that typical investment banking and raising money for a late stage company charges 7% while for a startup a banker is lucky to get 5%. Yet it is MUCH harder to raise money for a startup and its less money so there is less money in it. It’s a weird industry. I love it because its fun to build “Yes Me Ayin” which is Hebrew for something from nothing (the quote is from a Jewish Philosophy book from high school called The Kuzari) but it’s really difficult to work with some other entrepreneurs either as partners or consulting because most of us simply don’t value help.
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