07/29/2026
Equity is expensive. But some founders give it away like it’s a LinkedIn endorsement.
I spoke to a founder a while back who told me they couldn’t raise pre-seed because investors said the team lacked industry experience.
So they did what they thought they were supposed to do.
They recruited FIVE advisors… and gave away 15% of the company.
Last week, I asked, “So… how’s the raise going?”
“Investors now say we have too many people on the cap table.”
It didn’t solve the fundraising problem. It created a bigger one.
So I asked, “What have the advisors done so far?”
“Nothing at all yet. They won’t even respond to my emails or calls.”
15% of a startup. For people who don’t even answer emails.
Every desperate fundraising decision feels temporary. But the impact is permanent.
Founders hear one piece of feedback, then overcorrect. One piece of feedback turns into a permanent decision.
“Need advisors?” Give away equity.
“Need traction?” Slash prices.
“Need customers?” Spend six months building features nobody asked for.
But sometimes the response isn’t to DO MORE. It’s asking whether the advice actually solves the problem.
Equity is one of the most expensive assets you’ll ever own. Don’t spend it trying to buy credibility.
Spend it on people who create measurable value.
Because once you give away equity… you’re not getting it back.