Slicing Pie: Funding Your Company Without Funds
Format: PDF / Kindle (mobi) / ePub
You and a partner go into business together and split the equity 50/50. You do all the work and your partner slacks off. He owns half your business- now what?
Slicing Pie outlines a process for calculating exactly the right number of shares each founder or employee in an early stage company deserves.
You will learn:
- How to value the time and resources an individual brings to the company relative to the contributions of others
- The right way to value intangible things like ideas and relationships
- What to do when a founder leaves your company
- How to handle equity when you have to fire someone
- Important issues to discuss with your lawyer
- Much more
Research shows that dynamic equity split models, like the one outlined in Slicing Pie, is the best way to avoid conflicts as the company grows.
The new and improved Version 2.3 contains updated information about legal issues, idea valuation, retrofitting and much more!
you somewhere in the neighborhood of $15,000 - $50,000 for a very bare bones package. I would rather use that kind of money to get customers, but I completely understand if an investor wants to have the right agreements in place. Investors want to protect their money because it’s hard to get and everybody wants some. If the money is coming in at less than one million dollars it might be easier to call it a convertible loan and be done with it. That way the cash can turn into equity when you do
like any other resignation without cause and leadership will pass to the next largest shareholder (or whatever the herd decides). If none of the other Grunts wants to carry on you may have to sell what you can and shut down the company. Shutting Down If the company’s debt exceeds any cash they were able to generate through the sale of assets the company will still owe the creditors. If you anticipated taking on the debt you should have set up a legal structure, such as an LLC, to protect
they were treated fairly. And, rather than coming to an equitable agreement, they simply stopped working together. Both leave the relationship angrily trying to justify why the other person was wrong. Even in situations that the individuals would describe as “amicable”, there is usually anger and resentment. In many cases burning a fellow entrepreneur isn’t intentional; it is a byproduct of ignorance rather than a product of arrogance. The life of an entrepreneur, especially a career
Fund pie. When they leave the shared Grunt Fund they are essentially resigning without cause and are treated as such (see way above). The time that they forfeit from the shared Grunt Fund is gained in the company’s Grunt Fund. Other people don’t participate in the shared Grunt Fund because they receive other value such as access to potential clients. Or maybe their time commitment is so nominal that it’s not worth tracking. At Lake Shark everyone is happy because they all have a mechanism for
SlicingPie.com/game or scan the code. Enter the code “pieplay” The End About the Author Mike Moyer is a professional entrepreneur who has started companies from scratch, joined start-up companies, helped others start companies, raised millions of dollars of start-up capital and helped sell start-up companies. He has worked in a variety of industries ranging from vacuum cleaners, to motor home chassis, to fine wine. Mike has a MS in Integrated Marketing Communication from