Slicing Pie is a framework for allocating equity in early-stage startups based on what each founder actually contributes, rather than what they promise to contribute. Developed by entrepreneur Mike Moyer, the model replaces the fixed equity negotiation with a running calculation that updates every time someone logs a contribution.
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Every contribution — an hour of work, a dollar of investment, a tool or resource provided — is converted into "slices" using a standard formula. Time is valued at a fair market rate; cash and at-risk contributions are typically doubled to reflect additional risk. Each founder's equity percentage equals their slices divided by the total slices of the whole team. Because the calculation happens continuously, the split is always fair at any point in time.
The core formula
Your equity % = your slices ÷ the team's total slices — recalculated automatically every time anyone logs a contribution.
One of Slicing Pie's most elegant features is its handling of founder departures. Because equity is already proportional to contribution, there's no need to negotiate a "fair" exit price. A good leaver keeps their accumulated slices; a bad leaver forfeits them. The model defines these categories in advance, removing ambiguity from what is often the most contentious conversation a founding team faces.
Slicing Pie works best in the pre-product bootstrapping phase — when contribution levels are unequal and unpredictable. Fixed equity is simpler and legally cleaner once the company has institutional investors. Many teams run a Slicing Pie model until a priced funding round, then convert accumulated percentages into a formal cap table. Equafy supports both models and the conversion between them.
| Slicing Pie (dynamic) | Fixed equity | |
|---|---|---|
| Best phase | Pre-product bootstrapping | Post-funding / priced round |
| How the split changes | Continuously, per contribution | Locked once at incorporation |
| Handling departures | Automatic (good vs. bad leaver) | Manual renegotiation |
| Legal complexity | Lower (pre-money agreement) | Higher (formal cap table) |
Equafy implements the Slicing Pie framework through its dynamic equity engine. You set contribution types, configure multipliers per type, and log contributions per member. The platform calculates everyone's dynamic share in real time. You can run a fully dynamic model, mix it with fixed allocations for founders who want a guaranteed floor, and maintain a reserved pool alongside — all within the same cap table.
Mike Moyer, an entrepreneur and lecturer at the University of Chicago Booth School of Business, published the Slicing Pie model in his book of the same name.
It works best pre-funding. Once you have investors with formal equity stakes, equity needs to be fixed. Teams typically convert from Slicing Pie to a fixed cap table at a seed or Series A round.
Slices (Grunt Fund units) are the unit of account in the model. Each contribution is valued and converted into a number of slices. A founder's equity percentage equals their slices divided by the total slices of all contributors.
Equafy runs the Slicing Pie calculation automatically — so your equity always reflects your team's actual contributions.
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