How much is a slice of a startup worth? Usually, this is relatively straightforward: investors calculate value and exchange capital for a stake in the business. This places a specific monetary value on that portion of the startup. However, in some cases, startups give up equity in exchange for advice or access to networks and accelerators.
One of the latest entrants to that space is Archie, a fintech accelerator (of sorts) launched by founders and executives from Metro Bank, Atom and Uber. The company said it will offer “intellectual capital” in exchange for equity in early-stage fintech startups.
Archie will operate similarly to traditional accelerators by providing mentoring and networking opportunities. However, unlike other accelerators, it isn’t providing fixed cohort-based programmes and will not (for now) provide capital in exchange for the equity it takes, which is between 3% and 7%....