Slicing Pie at the International Startup Festival in Montreal
Perfect equity splits for startups
You and a partner go in “50/50” on a new business. You do all the work, he owns half the company. Now what? Traditional equity splits are never fair. Someone always has more than they deserve at the expense of others. Contrary to conventional wisdom, there is a simple method for dividing equity in an early stage company that tells you exactly the right number of shares for each participant. Attendees will learn how to implement a practical dynamic equity split using an allocation framework that tells you how many shares each person gets, and a recovery framework that tells you the fair buyout price (if any) in the event that someone leaves.