Risk Taken vs. Value Creation

Why Risk taken is more important than value added when splitting equity. Hint: risk taken is knowable, value added is not! Click to Tweet Once in a while, someone will ask me why the Slicing Pie model isn’t based on value creation instead of the fair market value of the contributions made. The concept sounds reasonable: shouldn’t a […]

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The Fair Market Value of a Relationship

Slicing Pie uses fair market value as part of the formula for determining fair equity. I often get questions on how to value a relationship. Everyone on the planet will agree that relationships are important and valuable, but putting a fair market value on the relationship seems difficult. Relationships are only valuable if they can […]

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Fair Market Value

Slicing Pie uses fair market value as part of the formula for determining the perfect allocation of equity in a startup company. The fair market value is the price that a given property, asset or service would fetch in the marketplace, subject to the following conditions: Prospective buyers and sellers are reasonably knowledgeable about the asset; they […]

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Slicing Pie at the International Startup Festival in Montreal

Perfect equity splits for startups You and a partner go in “50/50” on a new business. You do all the work, he owns half the company. Now what? Traditional equity splits are never fair. Someone always has more than they deserve at the expense of others. Contrary to conventional wisdom, there is a simple method […]

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Slicing Pie Retrofit/Forecast Guide

Many founders discover the Slicing Pie model after they have already succumbed to a dreaded fixed split. This guide outlines the process for retrofitting the Slicing Pie model using the Retrofitting/Forecast Tool spreadsheet that you can download below. Some ideas for doing this retrofit is covered in the Slicing Pie book so if you’re not […]

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Noam Wasserman’s Equity Checklist

Noam is a professor at Harvard University who has studied founder’s issues extensively. His book, The Founder’s Dilemmas, covers the major mistakes that founders make. One of them, of course, is equity splits. In the video below, Noam talks about the main problem with most splits:

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