"Slicing Pie" by Mike Moyer

[Alan Moore]

All,

I just finished reading a book called "Slicing Pie" by Mike Moyer. It is a great book that describes how to avoid issues with equity allocation in startups by following a dynamic equity split model.

At the end of the book it also describes Lake Shark LLC and I was struck by how it is structured in a very similar way as Co-op Source is.

The premise of the book is based on dynamic equity splits as opposed to the static equity model typical of most startups. The book is very specific in it's recommended practices that are clearly informed by years of startup experience.

Similarly, Co-op Source has been developing a model based on dynamic income splits. Our thinking has been that splitting income instead of equity avoids a whole host of SEC issues and other legal complications; however, this has yet to be determined. It could be that dynamic equity splits are a better approach for Co-op Source so I am grateful for Mr. Moyer's book in illuminating this dimly lit path.

The equity vs. income split difference also reflects the focus on retained ownership of the cooperative model as opposed to the debt and exit strategies typical of most startups, e.g. buyouts or IPOs. However, the focus on fairness and honesty is common to both approaches and many of the rules outlined in the book can be applied to any kind of dynamic split.

I highly recommend this book to anyone considering founding or working for a startup. Here is a link to the book:

http://www.amazon.com/Slicing-Pie-Company-Without-Funds-ebook/dp/B0096EFHBI

If you read this book please let us know what you think. We'd like to hear how you think the ideas can be applied to the cooperative software projects.

Take care.

Alan

-- 
"Whatever you can do, or dream you can do, begin it. Boldness has genius, power, and magic in it. Begin it now." - Goethe