The Ownership Algorithm
The Ownership algorithm automatically calculates the ownership split of a company based on team and investor contributions. Our algorithm works behind the scenes to generate a fair valuation and cap-table in real time.


Each contributor is assigned two metrics upon joining a company:
  • A Salary Base rate. Based on their market value. Used to assign a monetary value to their time contributed.
  • A Buyout Clause. A multiplier on this hour rate that limits the maximum they can ever earn from any time-based contribution.
As they accrue hours and bonuses we track two additional metrics:
  • The total market value (aka Cost Value) of all of the work they have done.
  • The Percentage ownership of the company that this work represents.
These can be thought of as the four metrics of the Ownership algorithm.
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