Pie Slicing
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
In startups, equity should not be fixed on day one (e.g., 50/50), but should be dynamically adjusted based on the market value of each person's actual contributions of capital, time, and resources. Equity is only solidified when the company has cash flow to pay salaries.
SCAFFOLDING EFFECT
Reduce cognitive load
Fair distribution. Prevents 'free-riding' and 'founder conflicts'. Ensures equity structure reflects real contributions, not arbitrary promises.
Anchor fast decisions
The core of dynamic equity (e.g., Slicing Pie model): contributions occur continuously, and equity should accumulate incrementally based on actual inputs (capital, time, resources, converted at market value), rather than being split equally on 'day 0' when information is minimal. Equity remains fluid until the company can generate cash salaries, then solidifies, making the equity structure reflect true contributions and penalize free-riding.
MINIMUM ACTION
In progress 0/4Practice this model in one real situation:
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Source support: Explicit
- slicingpie.comhttps://slicingpie.com/learn-slicing-pie/perfectly-fair-equity-splits-for-bootstrapped-startups-xlverified
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