Category Archives for "Blog"

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. Fair market value is the price a person would have been paid by someone who could afford to pay for the same contribution, this is similar to opportunity cost. When someone contributes something […]

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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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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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