Get Them Gators! A Primer on the Power of Dynamic Equity Splits for Potential Investors, Partners and Employees

by Mike Moyer

Today nearly every startup company uses a pre-negotiated fixed equity split. Because startups change, the split that was right one day will be wrong the next. This means that in nearly every startup investment there are less-than alligators (<) representing people who have less than they deserve and greater-than alligators (>) representing people who have more than they deserve. In a fixed equity split every deal is an alligator pit.When we approach the alligator pit we do it with fear, mistrust and a keen instinct towards self-preservation. These are not the best building blocks for creating an awesome company.Get Them Gators! is a short guide to why dynamic equity splits are the perfect solution for every bootstrapped startup in the world. It is designed to introduce you to the power of dynamic equity splits. Slicing Pie, provides detailed instruction on how to implement a dynamic equity split.Please this book does not describe how to implement a dynamic equity split. To learn that please read Slicing Funding Your Company Without Funds

Genres: Business

20 pages, Kindle Edition

First published November 15, 2013

About the author

Mike is a career entrepreneur and investor who has started and run companies in a variety of industries ranging from clothing manufacturing to marketing technology. Today he runs Slicing Pie, a SaaS company that helps startup founders create perfectly fair equity splits, and MosquitOasis that makes pop-up mosquito net tents for kids.

He teaches entrepreneurship at Northwestern University and has held other faculty appointments at the University of Chicago Booth School of Business and MIT. He has written eight books with a focus on business and entrepreneurship including Pitch Ninja, The Slicing Pie Handbook, and Will Work for Pie.

He has an MS in integrated marketing from Northwestern University and an MBA from the University of Chicago. He lives in Lake Forest, Illinois with his wife and three kids.

Reviews

[Costin Grigore]

Short într-o to Slicing Pie. At the end you also have a super short (3 pages) intro.

It's good to track how much relative value someone adds to the company. Absolute value will be seen at the valuation, relative value is easy to see by counting time, money, resources (costs).