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This is the cleanest statement of your core thesis: money in and sweat in are different instruments. Slicing Pie prices cash at a 4x multiplier and time at 2x precisely because a rupee out of your bank is riskier and scarcer than an hour of work, which is the reasoning that stops a 5 lakh cheque from silently becoming 30 percent of the company.
The Magic of Multipliers
From Slicing Pie by Mike Moyer 7 min read
- Cash contributions carry a 4x risk multiplier and non-cash (time, ideas) a 2x, because real money out of pocket is scarcer and riskier than sweat.
- Treating cash and sweat as separate, differently-priced inputs is what keeps one founder's cheque from swallowing the cap table.
- The multiplier logic gives you a defensible, non-arbitrary way to explain to a co-founder why their cash is repaid or converts, not just gifted equity.
