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by plumtucker 4094 days ago
This formula is a way to unwind an unfair equity split. It is common for founders to take a disproportionate chunk of equity at the outset of the venture even though they may not really deserve it.

The Slicing Pie model ensures that each person on the team has exactly what they deserve to have. This would avoid unfair splits at the end that would need to be readjusted.

Here is an article about how it works: http://www.slicingpie.com/how-to-use-a-dynamic-equity-split-...