If you have split equity in your startup, you’ve probably made one of these horrible mistakes:
- You split equity at the outset of the venture before work had really begun.
- You split equity into fixed, usually equal, chunks (50/50, 60/40, 25/25/25/25, etc.)
Nearly every startup on the planet makes one or both of these mistakes. Not only are they extremely common, but also extremely devastating. A split like this is based on the assumption that the future is going to turn out exactly as you expect. The future is unpredictable, of course, so the moment something doesn’t go as planned, your equity split is going to be unfair and force the partners into a painful renegotiation that will probably fall victim to the same mistakes.
The Slicing Pie model for equity allocation and recovery is different. Unlike pretty much every other approach to splitting equity, the Slicing Pie model is based on what actually happens in your company and leaves little room for disagreement. No matter what happens, your equity split will always be fair.
The Slicing Pie model is free to use and you can download a free sample of The Slicing Pie Handbook below:
