You and a partner go into business together and split the equity 50/50. You do all the work and your partner slacks off. He owns half your business - now what?
Slicing Pie outlines a process for calculating exactly the right number of shares each founder or employee in an early stage company deserves.
You will learn:
How to value the time and resources an individual brings to the company relative to the contributions of others
The right way to value intangible things like ideas and relationships
What to do when a founder leaves your company
How to handle equity when you have to fire someone
Important issues to discuss with your lawyer
Research shows that dynamic equity split models, like the one outlined in Slicing Pie, is the best way to avoid conflicts as the company grows. The new and improved Version 2.3 contains updated information about legal issues, idea valuation, retrofitting, and much more!
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Literally, how to answer the million dollar question…
I use to hate the idea of having partners
Yes, especially for those who are open to starting a company with partners or joining one early on. This provides a framework for making sure everyone can do the best they can and end up happy with the results.
I do not know of any other books that talk about dynamic equity splits.
not that I know of
A system for accounting for the unknown.
Many of my friends have divided the pie too early & too late. This idea of setting up a system to make sure the company equity is divided in a predictable way is wonderful. It also sets the incentives up so that people want to keep working & how to deal with when someone wants or needs to leave.
- Amazon Customer