Unfair Incubators and Accelerators

  Incubators and accelerators often request a fixed chunk of equity from the companies who participate in their programs. The organization then provides services such as office space, supplies, access to the Internet, equipment (like printers, copiers and fax machines), mentors and educational programs. I’ve seen these percentages range from 5% to as much as […]

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Different Rates for Different Tasks

A CTO, for instance, might code a new app and respond to customer service emails and fix bugs. These activities require different skills and some of the tasks appear to be more important. Sometimes, teams want to assign different pay rates to different tasks.

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Is Slicing Pie a Scam?

Slicing Pie imposes the same logical consequences on all participants in a startup. Everyone has a choice every day. They can do their work the best they can or not. If not, they lose. It’s not personal, it’s not punishment, it’s just business!

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Profit Pitfalls

One of the most common misconceptions about startups deals with the basic definition of profits. Most people understand that Profits = Revenue – Expenses
but, many people make some fundamental mistakes about what constitutes revenue and expenses

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Slicing Pie Offer Letter Template

I published a sample Slicing Pie offer letter a few years ago and it has been a very popular download. Last week I took another look at it and made some updates. The key is to make it clear that the participant is being offered a position with an agreed-upon fair market salary, but that […]

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New Book in Progress: Slicing Pie À La Mode

I’ve started work on a new book, called Slicing Pie À La Mode, which will cover a number of topics related to Slicing Pie in more depth including: Consulting Companies Real Estate Deals Bonus Programs Incubators and Accelerators (“Nested” Pies) Company Polices I’d like your input with regard to other topics I should be sure to […]

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The Four Horsemen of the Equity Apocalypse

There are four major problems with the way most equity splits are created in early-stage, bootstrapped companies. These are the “Four Horseman of the Equity Apocalypse” because the presence of any one of them can easily doom a fledgling startup by causing disputes between founders and other participants that have nothing to do with the actual business. A tragic tale told over and over and over…if you’re a party to an equity split with any or all of these fatal flaws brace yourself—things are going to get ugly!

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Avoiding Unnecessary Taxes With Slicing Pie

There is more than one way to make a Pie from a legal standpoint, the big issues relate to how shares are actually issued in a way to avoid unnecessary taxes. All equity-split models create more or less tax exposure depending on how the deal is executed. In some cases, the final split can be […]

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Do Our Monkey Brains Understand Fairness?

Fairness is a central element of human morality, but it is also an instinct of our primate brethren. An attendee of a Slicing Pie event in Seattle brought this to my attention (thanks Jim!) by sharing a fascinating video of how monkeys behave when they sense unfairness. In my experience, humans also have an innate […]

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