[nugget]

On Tuesday I spend a hundred bucks and start a Delaware LLC that has no assets and no business plan - what's the company worth? Most would say $0 or close to $0.

After breakfast on Wednesday I spend a couple hours on an abstract powerpoint deck, make a bunch of phone calls, and by dinner time (based on past successes and personal network) I have $1m in seed funds committed at a $5m pre-money valuation. What's the company worth then?

It's one of the best tax incentives out there, in that successful founders and very early employees usually pay long-term capital gains on near zero-basis stock.