I hear this all the time from founders: “I need to have 51% of the equity so I can ‘maintain control!’” Yes, if you own 51% you will probably technically have control, but I cringe when I hear this because it ignores the real issue: do you deserve control? This is a more complicated issue
When thinking about how to hire a team or acquire resources for your startup, it’s important—very important—to understand the difference between equity and compensation. I often hear people say that they are “paid with equity” or “earn equity” at their company. And, while it is technically possible to pay someone with equity, it is rarely
Slicing Pie is based on the unpaid portion of the fair market value of each person’s contribution. In a startup, time is one of the most common contributions from founders which means the first step in establishing a new partnership with a co-founder is to determine the person’s fair market salary. This is the amount
The Pie Slicer, helps team keep track who deserves equity and how much. The tool automatically adjusts based on observable changes in team membership, commitment levels, financial commitments, and even changes in corporate strategy.
Berlin: thanks to the efforts of Stefanie Strümpfler, partner of dextrae Rechtsanwälte · Fachanwälte, who customised for German founders the Cofounder Agreement template – German founders can now use the dynamic equity split based on Mike Moyer’s Slicing Pie method for their projects until incorporation. This is great news for German early-stage founders, as it