Cash is after-tax, already-earned money with real opportunity cost. Because it carries more financial risk, it typically translates to more shares than sweat equity.
Equal
2×
4× more
How shares are calculated:
• Cash × multiplier = shares
• Hours × hourly rate = shares
Example:
• $10,000 cash invested × 2 = 20,000 shares
• 100 hrs contributed × $100/hr = 10,000 shares
Adjust cash, hours, and rates below to see how contributions affect ownership.
Ownership Split
Equal
Dynamic
Adjust cash, hours, and rates below to see how contributions affect ownership.
How should cash and time be weighted?
Cash is after-tax, already-earned money with real opportunity cost.