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A cash contribution is a contribution that consumes an individual participant’s actual cash, usually in the form of an unreimbursed expense or cash expenditure from the company account. A cash contribution can also be tangible property with cash value like equipment or supplies. The formula to determine slices is as follows:   Slices = Fair Market Value x Cash Multiplier   If you’re dealing with actual cash, then the fair market value is equal to the amount of cash spent. If the cash isn’t spent, it’s not at risk. It’s just sitting in the bank. Slices get allocated when the cash gets spent.
The Slicing Pie Handbook: Perfectly Fair Equity Splits for Bootstrapped Startups (Mike Moyer's Virtual Dojo)
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