David, please see this study by Noam Wasserman and Thomas Hellman
. It shows the majority of startups used fixed equity splits. Even without referencing the study, you may observe that very few startups implement dynamic splits. Without Slicing Pie, a dynamic split can be very complicated.
That being said, all splits are dynamic because they all eventually have to adjust. The adjustment is usually a co-founder dispute and renegotiation which only leads to more fights in the future. I call the traditional model "Fix & Fight" for this reason. Slicing Pie provides a logical, fair formula for adjustment.
Rob, Thanks for reading Slicing Pie!
Slicing Pie converts all contributions into "slices" a slice is a fictional unit of at-risk contribution and is based on the contribution's fair market value and a multiplier that normalizes cash and non-cash contribution.
All the team has to agree on is fair market value. This is the amount the company would agree to pay if it had the money.
I have a new book out called The Slicing Pie Handbook
. It includes a foreword by Noam Wasserman citing his research and experience.