Dynamic Equity Split: Your Share Reflects What You Contributed
•
0 likes•19 views
The document discusses an equity splitting model called the "Grunt Fund" that aims to fairly distribute equity in a company based on each person's contributions. It describes assigning theoretical monetary values to different types of contributions like time, expenses, skills, etc. Each person's total contributions are calculated and compared to the whole to determine their percentage of equity ownership. The model is meant to reward individuals based on what they contributed, accommodate changes to the team, and remain flexible as the company grows.
Recommended
Recommended
More Related Content
More from Synerzip
More from Synerzip (20)
Recently uploaded
Recently uploaded (20)
Dynamic Equity Split: Your Share Reflects What You Contributed
- 2. Win a signed copy: SlicingPie.com/synerzip www.synerzip.com
- 4. Hard work now Big payout later Fun Along the Way www.synerzip.com
- 12. 50/50 50/50 You do all the work? www.synerzip.com
- 13. 50/50 50/50 You bring in another guy? www.synerzip.com
- 14. 50/50 50/50 Your partner wants to quit? www.synerzip.com
- 15. 50/50 50/50 You want to quit? www.synerzip.com
- 20. What We Need • Perfectly fair • Rewards participants for contributions • Provides ongoing motivation to continue contributing • Accommodates changes in the team • Flexible in the face of rapid change www.synerzip.com
- 22. Hard work now What you deserve later www.synerzip.com
- 23. Hard work now What you deserve later Share in proportion to what you contributed www.synerzip.com
- 24. Your Share Reflects What You Contributed www.synerzip.com
- 25. You Contribute 50% = You Should Get 50% www.synerzip.com
- 26. You Contribute 10% = You Should Get 10% www.synerzip.com
- 27. You Contribute 69.2% = You Should Get 69.2% www.synerzip.com
- 30. How it works 1. Assign a leader you can trust 2. Assign a theoretical value to the various inputs provided by each participant 3. Determine %: Individual Value ÷ Total Value= Shares % www.synerzip.com
- 31. 1. Get a Trustworthy Leader • Holds all equity • Manages Grunt Fund • Deals with departing Grunts www.synerzip.com
- 32. 2. Assign Theoretical Values www.synerzip.com
- 33. Time Negotiated Base Salary - Cash Compensation X Two ÷ 2,000 = Grunt Hourly Resource Rate (GHRR!) www.synerzip.com
- 34. Time $100,000 - $25,000 ($75,000 at risk) X Two ($150,000) ÷ 2,000 = Grunt Hourly Resource Rate (GHRR!) $75/hr www.synerzip.com
- 36. Everything Has a Theoretical Value • Unpaid Commission x 2 • Equal to Unpaid Royalty or Development Hours + Costs • Nothing or Unreimbursed Expense (4x) www.synerzip.com
- 37. Everything Has a Theoretical Value • Cash if purchased for the company • Cost if owned less than a year • Resale value if over a year www.synerzip.com
- 39. Grunts Contribute Different Things Grunt 2Grunt 1 Grunt 3 Jr. Developer Founder Rich Uncle
- 40. Theoretical Base Value (TBV) www.synerzip.com
- 44. www.synerzip.com
- 45. www.synerzip.com
- 47. www.synerzip.com
- 48. www.synerzip.com
- 49. Grunt 1’s Share* ÷ *If the Grunt Does Nothing Else www.synerzip.com
- 50. Grunt 2’s Share* ÷ *If the Grunt Does Nothing Else www.synerzip.com
- 51. Grunt 3’s Share* ÷ *If the Grunt Does Nothing Else www.synerzip.com
- 53. www.synerzip.com
- 54. www.synerzip.com
- 56. Removing a Grunt • No pie for time • Adjust other inputs to dollar amount (no multiplier) • Buy back if possible • Non-compete www.synerzip.com
- 57. Removing a Grunt • Keeps pie • Buyback at theoretical value • No non-compete www.synerzip.com
- 58. Removing a Grunt Grunt 2Grunt 1 Grunt 3 Grunt 4 www.synerzip.com
- 59. Removing a Grunt Grunt 2Grunt 1 Grunt 3 Grunt 4 www.synerzip.com
- 64. www.synerzip.com
- 65. www.synerzip.com
- 66. www.synerzip.com
- 67. Time Goes On… Grunt 2 Grunt 4 www.synerzip.com
- 68. www.synerzip.com
- 69. www.synerzip.com
- 70. What We Get • Perfectly fair • Rewards participants for contributions • Provides ongoing motivation to continue contributing • Accommodates changes in the team • Flexible in the face of rapid change www.synerzip.com
- 71. Outgrowing a Grunt Fund • When you can pay people you won’t need to use equity: – Real revenues – Positive cash flow – Significant series A investment www.synerzip.com
- 72. • Step-by-step guide • Version 1.2 on Amazon.com • Beta Version 2.x on slicingpie.com • Free e-upgrades for life Win a signed copy: SlicingPie.com/synerzip www.synerzip.com
- 73. • Mike Moyer • mikedmoyer@gmail.com • (773) 426-6353 • Chat with me on SlicingPie.com Win a signed copy: SlicingPie.com/synerzip www.synerzip.com
- 75. 1. Software product development partner for small/mid-sized technology companies • Exclusive focus on small/mid-sized technology companies, typically venture- backed companies in growth phase • By definition, all Synerzip work is the IP of its respective clients • Deep experience in full SDLC – design, dev, QA/testing, deployment 2. Dedicated team of high caliber software professionals for each client • Seamlessly extends client’s local team, offering full transparency • Stable teams with very low turn-over • NOT just “staff augmentation”, but provide full mgmt support 3. Actually reduces risk of development/delivery • Experienced team - uses appropriate level of engineering discipline • Practices Agile development – responsive, yet disciplined 4. Reduces cost – dual-shore team, 50% cost advantage 5. Offers long term flexibility – allows (facilitates) taking offshore team captive – aka “BOT” option Synerzip in a Nut-shell www.synerzip.com
- 77. 7777 Call Us for a Free Consultation! www.synerzip.com Hemant Elhence hemant@synerzip.com 469.322.0349 Thanks!