Learn how to create a perfect equity splits for early stage companies. Contrary to popular belief, there is a way to determine exactly how much equity each person in your company deserves. Based on the book, Slicing Pie (SlicingPie.com), by Mike Moyer (mikemoyer.com)
11. You do all the work?
You bring in another guy?
Your partner wants to quit?
1,000,000 other things?
But, what if…
You want to quit?
Your CTO gets hit by a bus?
12. Your Share % >
The Value of Your Contribution
The Total Value
Your Share % <
The Value of Your Contribution
The Total Value
15. What We Need
• Perfectly fair
• Rewards contributions
• Provides motivation
• Accommodates team changes
• Flexible in the face of rapid change
• Gets rid of the gators!
29. Equipment
• New = Purchase price x 4 (cash)
• Less than a year old = Purchase price x 2 (non-
cash)
• Older than a year = Book value x 2 (non-cash)
73. What We Got
• Perfectly fair
• Rewards contributions
• Provides motivation
• Accommodates team changes
• Flexible in the face of rapid change
• Gets rid of the gators!