The Founders Pie tool is reproduced from Frank Demmler, Teaching Professor of Entrepreneurship at the Donald H. Jones Center for Entrepreneurship. Far from the first-time founder approach of dividing a start-up’s stock equally because “it’s fair”, this unique and rigorous approach calculates equity division according to each founders skills (on a 0-10 rating basis) across a number of key areas:
- Idea
- Business Plan
- Domain Expertise
- Commitment and Risk
- Responsibilities
We recommend using this as one of several inputs into the equity-division decision process.