Valuing equity can be very hard in startups, but so is valuing cash and the team. I gave a talk a few days ago at the TechWadi Roadshow powered by Google For Entrepreneurs, that took place in the UK Lebanon Tech Hub in Beirut. I was asked to discuss the importance of teams when launching a startup, so I decided to explain the relative importance in time of the triumvirate: teams, equity and cash.
A major error by many first time entrepreneurs is to misprice the value of equity and cash, and generally assume they’re constant over the life of the startup.
The video starts about 30 seconds into the talk, and ends after a number of questions from the audience. Apologies for the quality, but it’s better than nothing, I hope.