A Grunt Fund is a method for implementing a dynamic equity split. Most founders do a static or fixed-split which inevitability has be to renegotiated, often painfully, when anything changes in the company. For instance, you and I go into business together and split it "50/50". You do all the work and I own 50% of the company for doing nothing. This situation is not only extremely devastating to a young company, but also it is extremely common.

A dynamic equity split easily solves this problem because it adapts to the changes the business goes through. It is "dynamic" in that the slice of the pie you deserve changes based on the contributions you and others make to the company.

There are three basic steps to implementing a Grunt Fund:

1. Choose a leader
2. Assign a theoretical value to the various contributions made by each participant
3. Determine percentages

Before you begin, however, you may need to get your ducks in a row...