Slicing Pie: Perfect Equity Splits for Bootstrapped Startups

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#1

I don’t recommend using this necessarily as is, but it can be a useful framework for more bootstrap focused startups.

Basically, agree on what a person’s time / sweat equity is worth, and track cash contributions.

From the Tips for Lawyers page:

  1. Slicing Pie is used during the bootstrapping stage of the startup’s lifecycle, when equity is essentially valueless, and it ends at breakeven or Series A investment, when the equity can be reliably priced. It is for this reason that there should not be any tax consequences when using Slicing Pie.
#2

I read this book years ago. Never liked the model. It equates time with value of contribution. It’s never that simple.

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#3

Yup. Straight hourly only makes sense for the most basic of tasks, and mostly isn’t the right way to think about current and future impact.

Consider it included for completeness :wink:

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#4

Totally. God grant me the confidence this guy has in developing a system that “always works” in a space as messy as this.

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