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The Early Bird Gets the Pie
One initial concern that I get about Slicing Pie is the fear that founders won’t get enough of the pie even though they were there during the beginning. Most people assume that the earlier you join a start-up the more risk you are taking and the more reward you should receive. Therefore, early participants should […]
Continue readingPaying Consultant Grunts with Pie
In Slicing Pie I recommend providing a sliding scale buyout to freelancers and consultants who provide services to the company. In this scenario the consultant can earn up to 200% of their base rate in pie if you are unable to pay them. The risk premium goes up a little each month so the earlier […]
Continue readingThe Good Way to Say Good Bye
There are four circumstances under which a person can leave your company based on two variables. The variables are “how” and “why”. The how can be that they decided to leave or you fired them; the why can be for good reason or for no good reason.
Continue readingSlicing Pie: A Guide to Dividing Up Early-Stage Start-up Equity
First Published on Tech Cocktail (Tech.co) Not long ago, I was approached by one of my students at Northwestern, who was distraught over a situation in a fledging company that she had started in my entrepreneurship class. Her group had decided to split the equity in her company equally – 25 percent each. Now that […]
Continue readingSlicing Pie: a Primer in Dividing Up Early-Stage Equity
Fairness starts with laying out the rules and agreeing to follow them. This means that we need to allocate equity based on a set of rules.
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