When your company gets big enough you will outgrow your Grunt Fund. Mostly because your incremental percentage of pie gets smaller as time goes by. In the beginning your 10 hours of work may be equal to 50% of the company if your partner also works 10 hours. Later, when the company has a $500,000 TBV your 10 hours won't get you very much. By this time you are probably ready to start looking for real investors. When you get the cash you can hire a lawyer and an accountant to put together a nice option program.

When you sit down with your lawyer you can tell them exactly how many shares each person on the team should receive. Remember, the TBV has no bearing on the value of your company. It simply provided a means to calculate percentages.