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Slicing Pie: Perfect Equity Splits Short as I possible

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This deck is my best attempt at showing the Slicing Pie concept in as few slides as possible. The model allows entrepreneurs and startup employees or angel investors determine a perfectly fair equity split for their company.

  • Although "Step 6" is repeated twice in the slideshow, there is apparently no "Step 8", based on Mike's infographic posted here: http://www.slicingpie.com/an-infographic-for-perfect-equity-splits/
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Slicing Pie: Perfect Equity Splits Short as I possible

  1. 1. Slicing Pie Perfect Equity Splits for Startups! EUREKA!
  2. 2. The Slicing Pie model for equity allocation and recovery is the only way to ensure that each person on your team gets exactly the equity they deserve—no more and no less! Here’s how it works:
  3. 3. Step 1: Recruit your team, you can add or subtract people later, Slicing Pie easily accommodates changes.
  4. 4. Step 2: Ask them to keep track of their contributions of time, money, ideas, relationships, supplies, equipment, facilities and anything else.
  5. 5. Step 3: Convert each of their contributions to slices based on fair market value and risk. Slices = Fair Market Value x Risk Multiplier
  6. 6. Step 4: Each person's share is equal to the slices they contributed divided by all the slices contributed by everyone. % = Individual’s Slices ÷ All Slices
  7. 7. The split changes over time as more contributions are made to ensure that each person has exactly what they deserve.
  8. 8. Step 5: When a person leaves their slices will allow the company to determine a fair buyout price (if any).
  9. 9. Step 6: When profits are generated or the company sells, the pie will determine how much each person gets.
  10. 10. Step 7: If the company raises series A funding the model will convert according to the terms of the new investor
  11. 11. Step 6: When profits are generated or the company sells, the pie will determine how much each person gets.
  12. 12. Learn More At: www.SlicingPie.com Everybody gets what they deserve to get... no more and no less!

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