The Awkward Conversation
In Slicing Pie, I refer to the “awkward conversation” that founder’s have about equity splits. The equity split negotiation is often the first major “deal” that founder’s do. I call them Alligator Pit negotiations. There are less-than alligators, who are are people who get less than what they deserve, and greater-than alligators, who are people who get more than they deserve. People approach equity negotiations the same way they approach alligator pits: with fear, caution and a keen interest towards self-preservation.
This podcast, produced by Alex Blumberg, is a rare glimpse into a real-actual startup equity negotiation. It’s great!
Their final agreement (as you will see) is a traditional fixed split, which may cause problems down the road it they want to add additional team members or partners or angel investors want in the deal. I wish these guys had come across Slicing Pie in their research! If anyone has any ideas on how to improve my SEO let me know!