13

Grunt Glossary

Fat Grunt: A person who has more than his or her fair share of the equity relative to other participants.

Grunt: a person who works in a startup doing whatever it takes to make the company a success.

Grunt Hourly Resource Rate or GHRR!: the theoretical value of one person’s time relative to another person’s time. It is not an actual value, it is used to calculate an individual’s percent of the pie. May be expressed as a “Theoretical Value” (see below) or a the preferred term “Slice” (see below)

Skinny Grunt: A person who has less than his or her fair share of the equity relative to other participants.

Slice: A fictional unit of risk used to determine ownership or share of the pie. Replaces the term Theoretical Base Value of TBV as described below. $1 TBV = 1 Slice

Theoretical Value: A fictional unit of risk used to determine ownership or share of the pie expressed in the local currency. $1.00 in cash = $4.00 in Theoretical Value after applying the cash risk multiplier. $1.00 in non-cash = $2.00 after applying the non-cash risk multiplier. Not to be confused with actual value or pre-money value.

Theoretical Base Value or TBV: because start-up companies are assumed to have no actual value in a Grunt Fund we use theoretical values with allow us to understand how important one contribution is relative to another contribution. The TBV is the sum off all the theoretical values of all contributions from all participants. It is used to calculate an individual’s percent of the pie.