Slicing Pie Fund Your Company Without Funds Pdf
Starting a new company can be an exciting but challenging endeavor. While many entrepreneurs dream of securing venture capital or angel investments to fund their businesses, many others do not have access to these resources. This is where the Slicing Pie model comes in.
What is the Slicing Pie model?
The Slicing Pie model is a formula for dividing equity in a startup company fairly and accurately based on each individual's contribution to the company. This model was created by Mike Moyer, a successful entrepreneur and author of the book "Slicing Pie: Fund Your Company Without Funds".
The Slicing Pie model is based on the principle that each individual's contribution to a startup company is valuable, whether it be time, money, or resources. By using the Slicing Pie model, founders can ensure that each person's contribution is fairly rewarded, and that the company's equity is distributed in a way that reflects each person's contribution.
How does the Slicing Pie model work?
The Slicing Pie model works by calculating each individual's "slice" of the equity pie based on their contribution to the company. The formula takes into account the fair market value of each person's contribution, as well as the total value of the company.
For example, if one person contributes $10,000 to the company and the total value of the company is $100,000, that person would receive a 10% slice of the equity pie. If another person contributes 100 hours of their time, and the fair market value of their time is $50 per hour, they would receive a 5% slice of the equity pie.
As the company grows and new contributors come on board, their slices of the equity pie can be calculated using the same formula. This ensures that each person's contribution is fairly rewarded, and that the company's equity is distributed in a way that reflects each person's contribution.
Why use the Slicing Pie model?
There are several benefits to using the Slicing Pie model to fund your startup company:
- Fairness: The Slicing Pie model ensures that each person's contribution is fairly rewarded, regardless of the type or amount of contribution.
- Flexibility: The Slicing Pie model is flexible and can be used to calculate equity splits at any stage of a company's growth.
- Transparency: The Slicing Pie model is transparent and easy to understand, which can help avoid conflicts and misunderstandings among founders and contributors.
- Efficiency: The Slicing Pie model can help startups conserve cash and resources by rewarding contributors with equity instead of cash payments.
Where can I learn more?
If you're interested in learning more about the Slicing Pie model, you can check out Mike Moyer's book "Slicing Pie: Fund Your Company Without Funds". This book provides a detailed explanation of the Slicing Pie model, as well as real-life examples of how it has been used to fund successful startup companies.
Overall, the Slicing Pie model offers a fair, flexible, transparent, and efficient way to fund your startup company without relying on traditional funding sources. By using this model, you can ensure that each person's contribution is fairly rewarded, and that your company's equity is distributed in a way that reflects each person's contribution.
