How do you compare the potential value of different stage companies? And as a company progresses what is the appropriate amount of stock to give new employees?
Using data from Crunchbase and Yahoo Finance we can calculate the average value created per company broken down by how much money they have raised. From this we can then compute relative returns at the different stages, e.g. $1M raised, $10M, $100M, etc.
For this exercise we'll calibrate relative to expected return from a company that's raised $1M.