Mike Moyer

Mostly has to do with SEC rules. % ownership of an LLC can work but has risks. You could try https://slicingpie.com/, but in practice I found it burdensome.

This can easily be handled by using Slicing Pie - it contemplates all of these scenarios fairly https://slicingpie.com/ You can pair it with something like https://mardukmethod.com to do all the tracking and set up the business.

a cofounder and I used this system for a previous company: https://slicingpie.com/ It worked pretty well for us, but we were also pretty well tuned to each others expectations in advance.

You could also consider a dynamic split arrangement. Used Slicing Pie (https://slicingpie.com) once and can never start a venture any other way. And the free excel sheet is actually better than the application ;)

The book "Slicing Pie" delves into the topic of how to split equity before receiving any outside funding in detail: https://www.amazon.com/Slicing-Pie-Funding-Company-without/dp/B00MFXJJ… https://slicingpie.com/ The idea is to dynamically adjust equity based on how much everyone is contributing. Some people report good experience using this dynamic split method: https://cofounderslab.com/discuss/has-anyone-used-the-slicing-pie-meth… With that said, I am sure there are a lot of different methods that could work depending on the people involved, it's not as if there is only one "right" way to do it.

Instead of a fixed equity allocation, have you considered a dynamic allocation system instead? All contributions (cash, time, relations etc.) are converted into “slices”, with a certain multiplier for risk. For example: * if someone contributes $X cash, they get 4X slices * if someone contributes work that normally has a $Y hourly rate, they get 2Y slices for each hour * if someone brings in a client for which they would have normally charged a $Z commission, they get 2Z slices You freeze the pie when you are bringing in sufficient revenue to afford paying everyone a market salary. % equity = slices owned / total number of slices You can learn more about this method at https://slicingpie.com (not affiliated, just think it's a better way of going about this)

Have you considered Mike Moyer's method, described in the Slicing Pie? http://slicingpie.com/ It is pretty fair and adjusts over the time based on the delivered values.

I like what you have, but feel something like this would be helpful for your employees to know how their contributions ultimately benefit them long term. http://slicingpie.com

Re: compensation, transparency is critical. One approach that might work well for Co-op based startups is the "dynamic equity split" as outlined by Mike Moyer in his book "Slicing Pie" - see also: http://www.slicingpie.com

This looks like Mike Moyer's Slicing Pie http://www.slicingpie.com/ He might not be as successful in promoting it but it is trying to solve same issue.

What do you and the rest of YC think of dynamic equity splits? They're described in Slicing the Pie: http://www.slicingpie.com/ http://www.bloomberg.com/bw/articles/2012-12-18/grunt-funds-are-trendi…

For anyone looking for an answer, I found a good guide: http://slicingpie.com/ The author has a couple of books on the subject as well as videos and slideshows. It works for any type of business. It's a pretty comprehensive and fair system which I'll continue to explore.

I like, a lot, the Grunt Fund idea of Slicing Pie (no affiliation): http://www.slicingpie.com/ The point is: why split the pie before it gets done or after? why not dynamically split based on the actual resources (money, time, equipment, whatever) people put in in the early days?

I'm interested to see how this plays out. My gut says it will fail because the risk/reward for contribution mix it incorrect, but I'm glad to see someone trying. For a more realistic (and legal) approach to crowd-founded companies, take a look at SlicingPie: http://slicingpie.com/

Everyone wanting to start a company should read this book. Then proceed. http://www.slicingpie.com/

Slicing Pie[1] provides a simple and fair way to divide up equity in early stage companies. [1]: http://www.slicingpie.com/

Having a small business or startup business with tons of decision to make is mind bubbling brain-wreck, but I tried reading the Book Slicing pie Mike Moyer and it all made sense, in his book he emphasized the startup equity by providing an example; also talked about splitting equity using the-grunt-fund-calculator grunt calculator and dig in to details on equity structure founders equity equity compensation, and differentiating your choice on salaries or equity. http://www.slicingpie.com

Lot of work happened in the last 5-10 years in the web3 space around tech-enabled participatory governance, with some funding backdrop because it's on top of a crypto platform. ENS is kind of the poster child https://docs.ens.domains/learn/protocol/ In terms of participation incentive models I like pointing people to slicing pie. The concept is simple enough and can learned from their free materials. Helpful mental model quantifying sweat "equity" where equity can be voting shares, or actual financial shares: https://slicingpie.com/ In terms of governance policy that is specific to your domain- what are the incentives and measures and countermeasures to ensure good behavior from the different roles of participants particular to therapy- there are certainly codes of conduct in the therapy space but probably this is going to be new work for you. I have read quite a bit in the anarchy space, including Graeber, and Chomsky's references and pull-outs from the moments during the Spanish Civil War when there was real movement here- regret to say that the prior thinking does not strike me as anywhere near sufficient to serve as models for the current shape of the world. A lot of new work has to get laid down for these to be real things. Democracy is a fragile mechanism that as we see can collapse quickly under lots of limited resource regimes and when community trust is fractured. High trust does not scale. Low trust is needed to scale and professionalize. But +1, think now…

I just heard about this the other day: http://slicingpie.com Not sure if it works or not. I think the current trend of 4 year vesting with a 1 year cliff (and 0.1%-0.5% for very early engineers in startups less than 7 people, as it seems on angel.co job postings) is totally messed up. It seems every startup wants to you take a $40k salary cut at least and isn't giving you equity anywhere close to that value (even optimistically, though it really should be at net present valuation. EG: If your last funding round was an incubator which put in $20k for %5, then your valuation is $400k, and each year that engineer gives up $40k in salary, he should get %10 of the company... until you do another round, at which the $40k will buy less of the company. But nobody is doing that...) Don't even get me started on the one year cliff. Can you imagine any other investor in a startup taking a one year cliff? "Ok, we'll take your venture capital, but you're going to vest and it's got a cliff. If you act like jackasses in the first year we're going to cut you off and you get nothing" Here's the magical thinking: Somehow investor dollars are more "real" than employee sweat, or lost salary the employee gave up to come work there. Hell, if they pay you %60 of a market salary and then give you %40 as deferred salary, you should still get probably %4 of your salaries value in equity to compensate for the risk that the deferred salary will never be paid. And why don't startups use…

You should read this book (your cofounder too): http://slicingpie.com/book/

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-program-so…