Anyone who has every been involved in an early stage startup knows the who gets what percent of the business. Some default to even splits between founders, others negotiate based on arbitrary metrics and values, who came up with what, etc. Mike and his book Slicing Pie provide a very clean dynamic equity allocation model that anyone in an early stage company can use to fairly and dynamically allocate equity based on the VALUE each founder or team member add.
Favorite Quote (s):
“How much do we each get? is the most dangerous question of all business questions. It causes more problem than any other question I have found.” (page 13) ~ Mike Moyer
“The moral of the story, concentrate on building value and don’t worry about percentage ownership. Don’t get hung up on it. […] What matters is that people are treated fairly and they ultimately get a payout that’s fair given what they have put in.” (page 26) ~ Mike Moyer
“Startups change FAST, really fast. […] So, when things inevitably change, you and your fellow Grunts will have to endure painful renegotiations to set things right, or live with the inequity of the split.” (page 38) ~ Mike Moyer