A very quick read. Lots of “supporting” stories up front. The pain points of issuing equity too early in a project, or too late. So what is the solution? dynamic equity. Everyone tracks their work, either per hour, or per day, depending on what is more appropriate. Everyone is given a hypothetical hourly rate. The pie is then split up based on the amount of hypothetical cash they are owed relative to the entire amount of cash owed to all participants.
This is a fantastic way to grow a project from zero to company, without having to worry too much about over/under-compensating participants who are being compensated in equity. Of course, the story is different if there is a blend of cash & equity conversation.
The book has some nice heuristics to keep in mind. Like what is a fair hypothetical hourly rate. How much equity should an angel investor’s cash be given? And what to do if someone leaves.
3/5.