Slicing Pie does not take a person’s risk tolerance into account when calculating slices. It only accounts for actual at-risk contributions. If someone has a low tolerance for risk, they may feel a high level of anxiety when contributing money to a startup. This doesn’t change the fair market value of the money, however. Someone with a high tolerance for risk may invest their life savings, but this doesn’t change the fair market value of the money they actually invest. A basic rule about investing is not to invest any more than you can afford to lose. If you can’t tolerate the risk, don’t
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