Sweat equity? Equity for effort? Equity for cash? Equity for IP?
There are many different models that can be implemented to determine who gets equity in a startup and, how much.
But, how do you determine this in a fair manner?
You may have heard stories of mates going for a 50:50 split in the equity. One did everything, the other did nothing yet the equity split was in place. Maybe this has even happened to you.
In his book, Slicing Pie, entrepreneur Mike Meyer shares his wisdom on how to avoid such situations.
Having the shares apportioned in a fair, reasonable way is crucial for any startup equity plan. It is a building block of the business.
Meyer’s book is available in Kindle format or paperback.
You can read some insights on his website and, download a nifty spreadsheet that helps attribute equity for grunt work.
Save yourself from some stress – determine the right equity attribution method from the start.
