As a writer, I frequently encounter the question of whether ChatGPT poses a threat to my career. So far, my answer remains a resounding “no,” primarily because I possess abilities that AI cannot replicate.
In reality, many AI models produce mediocre output, which is entirely understandable: when a model is trained on extensive datasets, it tends to generate average results. Pouring in the brilliance of Tolstoy and then mixing it with the most popular YouTube videos yields a landscape where the depth of content often resembles a kiddie pool—entertaining but shallow.
However, the strength of AI lies not in creativity but in its capacity to elevate those who are below average to an acceptable standard. That’s quite an impressive feature! The exciting, forward-looking realm of artificial intelligence offers us a unique opportunity: the power to achieve mediocrity with ease. Imagine being reliably average at various tasks you attempt for the first time—that's the transformation unfolding before us.
While I consider myself an above-average writer, I sometimes find myself frustrated by the standard of writing produced by generative AI. Yet, I recognize that AI is not yet designed to excel in this area.
Currently, AI enables almost anyone to be an average writer in professions where communication is crucial. You can use AI to draft a contract, summarize a report, or offer basic startup advice—instantly and for free.
For instance, in addition to crafting engaging content, I also work as a pitch coach. Recently, one of my clients excitedly informed me that he'd found a potential co-founder for his venture. Although I don't specialize in co-founding strategies, I assured him that I could cover the essentials.
Following our call, I decided to ask ChatGPT a few questions out of curiosity. The outcome was enlightening: I realized I’m a proficient pitch coach and fundraising strategist, but my expertise in general startup advice is, at best, average. I couldn’t help but laugh when I read ChatGPT’s responses; they mirrored what I told the founder almost word for word. And, of course, ChatGPT provides this invaluable information at a fraction of my cost.
So, it appears I might have been an AI all along!
Here’s a glimpse of the advice ChatGPT offered, which could easily be a recap of my conversation with the client.
Me: I’m a startup founder, and I need some guidance.
ChatGPT: Absolutely! I’d be happy to assist you. What specific advice are you looking for? Are you interested in business strategy, funding, product development, team building, marketing, or something else? Let me know so I can provide you with the most relevant information.
Me: My company has been operational for six months, and I'm considering bringing in a co-founder. What percentage of equity should I offer them?
ChatGPT: The amount of equity to offer a new co-founder depends on various factors and can be tricky. Here are some steps to help you navigate this decision:
1. Evaluate Their Contribution: Consider what the new co-founder will bring to the table—skills, experience, network, and role in the company. Are they crucial for your growth, or can their responsibilities be filled by an employee?
2. Assess Current Valuation: If your company has been running for six months, you may have some traction or revenue. The equity offered should reflect both your current valuation and the future growth potential the co-founder will help generate.
3. Vesting Schedule: Co-founder equity typically includes a vesting schedule with a one-year cliff. If they leave before one year, they forfeit their equity, which vests monthly or quarterly over approximately three to four years.
4. Equity Pool Considerations: Keep in mind how much equity you have reserved for future hires and consultants. Offering excessive equity to a co-founder can dilute your own stake significantly.
5. Negotiation Tactics: Understand that your initial equity offer is usually just the starting point for negotiation. Be prepared to rationalize your valuation and the equity percentage you propose.
6. Seek Guidance: It’s beneficial to consult mentors or legal advisors who specialize in startups for insights on what constitutes a fair equity offer.
7. Future Investment Considerations: Be mindful that future funding rounds will dilute equity for all shareholders, including you and your co-founder. After new investment rounds, ensure that both of you maintain sufficient equity to stay motivated.
8. Industry Benchmarks: Research what equity percentages are typical in your industry for co-founders at your stage. It’s common for late-stage co-founders to receive anywhere from 10% to 25% based on the factors outlined above.
In conclusion, there is no universal solution to equity distribution; the offer should reflect the value they bring, your company’s stage, and the risks they assume as part of your startup. Be ready for discussions and adjustments to your offer based on your negotiations with the prospective co-founder.
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