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Slicing Pie Grunt Fund Cheat Sheet Summary Calculations The following table summarizes the theoretical value (AKA Slices) of the various ingredients for use in a Grunt Fund. Detailed explanations.

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Example of an Equity Split Founders: 20 to 30 percent divided among co-founders. The company contribution is rarely exactly 50/50 and the equity split should be based on a variety of factors, including those discussed above. Angel Investors: 20 to 30 percent. Venture Capital Providers: 30 to 40 percent.

In a fixed-split model, equity decisions are based on what founders anticipate each member of the team will contribute. In a dynamic-split model equity decisions are based on what founders actually contribute. The dynamic model assigns a relative value to the various contributions from each participant.

The Slicing Pie method provides a formula to help businesses calculate the percentage of their equity that should be shared with each stakeholder based on their contributions. Ultimately, the formula rewards teams in a way that is proportionate to their contribution to the business.

What is an equity split? Think of an equity split as dividing up a pie. In this case, the pie (or equity split) is the slice of the business each founder owns based on their value contribution.

In a dynamic equity split, the amount of equity each co-founder gets depends on the amount of capital or time they invest into the company. That amount resets monthly and there's a predetermined formula used to decide how the equity should be doled out. Businesses are often works in progress.

There are two ways to split equity: equally and dynamically (unequally). Before having a conversation with your partner about splitting equity, understand when to do these types of splits and their benefits and drawbacks.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232