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.
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. Step 1: Recruit your team, you can
add or subtract people later, Slicing
Pie easily accommodates changes.
4. Step 2: Ask them to keep track of
their contributions of time, money,
ideas, relationships, supplies,
equipment, facilities and anything
else.
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. 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. The split changes over time as more
contributions are made to ensure
that each person has exactly what
they deserve.
8. Step 5: When a person leaves their
slices will allow the company to
determine a fair buyout price (if
any).
9. Step 6: When profits are generated
or the company sells, the pie will
determine how much each person
gets.
10. Step 7: If the company raises
series A funding the model will
convert according to the terms of
the new investor
11. Step 6: When profits are generated
or the company sells, the pie will
determine how much each person
gets.