Day 2 kicks off with a high-stakes lesson on equity, investing, and valuation—because who doesn’t love poker chips when the game is business? The Bloxers are learning how to divvy up equity to bring in the right talent and skills without blowing through their cash. It’s all about getting what you need while holding onto what you’ve got. For the challenge, each contestant must propose the ideal equity partner they’re looking to bring on board and outline the structure of the relationship—no easy feat when your future is on the line. After some game-changing consults, the Bloxers gear up for the Blox-Off, where they’ll face role-playing questions from a potential investor.
Let’s learn a little bit more about why this Bloxer crash course in equity is so very important.
The "gap" between where we are now and where we're aiming to go often feels like the Grand Canyon—massive and daunting. To bridge this, startups need to gather a lot of inputs—whether it's services, vendors, or staff—to create the outputs that will drive growth. In the early stages, founders must find creative ways to source the funds needed to get traction, without giving away too much of their company in the process. Equity is an option, but giving away too much early on can leave you with an empty "pie." Once it's gone, it's gone.
To avoid these pitfalls, we explore the concept of a fixed equity split and the importance of building a vesting schedule. This allows founders to negotiate a stock percentage that isn’t given upfront but earned gradually over time. This approach prevents dead equity and protects your business. A crucial part of this process is determining the value of your company, so how do you calculate that valuation? We dive into strategies to help you put a fair number on the table when it comes to equity discussions.
To bridge the gap between where you are now and where you need to be to become fully financeable, many entrepreneurs need to think of their equity as currency. In the early stages of business, when cash is tight, offering equity can be a powerful way to attract the talent, partners, or resources you need without spending money you don’t have. Think of equity as poker chips—each time you give some away, you’re betting on that person or asset to bring significant value to your company. This approach allows you to build momentum and bring crucial skills on board, but it requires careful consideration to ensure you're making smart investments in your team and your future.
An equity split occurs when you offer a co-founder, vendor, or partner a share of your company’s ownership in exchange for their expertise or contribution, with no option to take it back. This means that once the deal is struck, the ownership percentage you give away remains theirs, even if the person leaves the company or stops providing value. It’s a long-term commitment, and the percentage doesn’t change, no matter the circumstances. Without legal tools in place to protect you, this can lead to complications if the person underdelivers or exits prematurely, so it’s critical to structure equity agreements carefully from the outset.
Dead equity refers to ownership in your company that is held by someone who is no longer adding value to the business. This often happens when a co-founder or partner leaves, either by quitting or getting fired, yet retains their equity stake because there was no legal mechanism in place to reclaim it. Having dead equity can burden your business, as you’re essentially giving away a portion of your company to someone who isn’t contributing. Preventing dead equity requires having strong legal protections and clearly defined agreements that allow you to claw back equity if certain conditions aren’t met.
A cliff is a protective measure for founders that adds a time-based condition to equity agreements. In essence, it ensures that the person receiving equity won’t actually own any of it until they’ve provided a minimum level of work or value over a specified period. This serves as a safeguard for the founder, ensuring that equity isn’t given away prematurely, and protects the business from situations where partners or employees leave before fully earning their stake. A cliff incentivizes long-term commitment and ensures that the equity you’re giving away is tied to measurable contributions.
Entrepreneurs often overlook the fact that they are the largest investor in their own business. Every hour, every dollar, and every resource poured into the business is an investment. It’s important to understand that your business is not just a passion project—it’s an asset that should generate value. Being able to track how your inputs—whether it’s time, money, or talent—translate into growth and value creation is vital. Entrepreneurs need to take a step back and view their business from an investment perspective, evaluating returns, assessing risks, and making data-driven decisions to increase the business's overall value.
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Andrea Furtick is a multifaceted creative force, renowned as a published author, fine artist, and toy designer. As the CEO of AGC Toys Inc., she pioneers innovative concepts in the realm of toy design, captivating audiences with her distinctive vision and craftsmanship. With a passion for storytelling and divination, Andrea is the creator of the Afro Goddess Divination Collection, a series celebrated for its spiritual depth and artistic beauty. Her work has garnered widespread acclaim, culminating in a contract with U.S. Games Systems Inc. in 2022, a testament to her enduring influence in the industry. In addition to her creative endeavors, Andrea is a dynamic keynote speaker, captivating audiences with her insights on art, spirituality, and entrepreneurship. Her engaging presentations have graced prestigious events such as The International Divination Event 2022 and the Northwestern Tarot Symposium 2022, solidifying her reputation as a thought leader in her field.
Carlos Rivis is a seasoned innovation expert with over 20 years of experience, guiding inventors, startups, venture studios, and Fortune 500 companies to bridge the gap between vision and execution. Specializing in turning complex ideas into actionable strategies and roadmaps, Carlos accelerates innovation by aligning the dreams of visionaries with the expertise of industry leaders. In the world of innovation, two key players emerge: visionaries who dream of futures others can't imagine but lack the strategies to bring them to life, and experts who master current technologies but struggle to envision beyond the possible. Carlos serves as the catalyst that companies need to transform visions into reality. He believes that most corporates are anchored by experts who can’t see beyond their ecosystem, while startups are led by visionaries who often believe that technology alone will guarantee success. Carlos transforms visionary concepts into market-leading solutions, focusing on execution, impact, and sustainability. His global network of innovators, investors, and industry leaders enables him to take on projects that align with his values and purpose, ensuring that every venture he engages with has the potential for real-world change. Driven by a strong personal code, Carlos operates with honesty, integrity, and respect at the core of everything he does, and he expects the same from his partners. If you're ready to push boundaries, leverage technology, and turn innovation into a powerful force for change, Carlos is the partner to help you make it happen.
Chase Curtiss is an innovative digital health expert and clinical exercise physiologist with a strong expertise in developing mobile software solutions within the medical, sports and fitness markets. Chase has an academic and research background in biomechanics, exercise physiology and neuroscience with published research in each field. Chase has been recognized as a pioneer in the mobile health space with the first ever FDA clearance for a software only mobile medical device. He has been highlighted in the Wall Street Journal, Bloomberg TV, Forbes, Pando Daily, Mobihealthnews, the Grey Sheet and many other mainstream and medically focused publications. YouTube has also named Chase NextUP for his work in video instruction content reaching 30 million viewers. As an expert in the field of digital healthcare, Chase is also a regular speaker having presented for events put on by Blue Cross Blue Shield, AARP and Chase was the 2014 commencement speaker for Wichita State University.
Jenny Heins is a multifaceted entrepreneur, artist, and visionary whose career is a testament to the power of ambition and the beauty of dreams realized. Recognized as Business Elite 40 Under 40 honoree (2023) and ranking nationally in real estate, Jenny's journey is marked by her relentless pursuit of excellence and her diverse achievements in various fields Jenny is the Music & Entertainment Host of the Emmy-nominated TV show "The American Dream" and the founder of Teal Door Realty, a fast growing national real estate brokerage, she has not only achieved professional success but has also been a source of inspiration and motivation for many. Her entrepreneurial spirit is complemented by a deep passion for art and design, as evidenced by her significant presence in the New York Fashion Week 2023 and her acclaimed work as a gallery artist. Beyond her achievements in media and the arts, Jenny stands out as a prolific venture capitalist. Her keen eye for potential and commitment to fostering innovation have led her to fund and mentor countless successful startups, turning nascent ideas into thriving enterprises. This aspect of her career highlights her belief in the transformative power of entrepreneurship and her dedication to supporting the next generation of business leaders. Her ventures extend beyond the realms of entertainment and real estate. Her artistic endeavors are showcased in The Palette Collection, where fashion meets art in an expressive and unique style. Her commitment to education and empowerment is reflected in the establishment of the Heins Center for Education, which focuses on enlightening and nurturing visionary minds. In her roles as an executive business consultant, coach, and venture capitalist, Jenny demonstrates a keen ability to identify potential and foster growth, guiding aspiring entrepreneurs and businesses to achieve their fullest potential.
Mandi Makoni is the Founder of Synergy Family Services, where she channels her lifelong passion for supporting both youth and adults in the community. With over 16 years of experience in various capacities, Mandi's work is deeply personal. Having been born into foster care and later adopted, she has firsthand experience of the emotional challenges and traumas that often accompany these situations. Her journey through mental health recovery and resilience, supported by her loving adoptive family, has fueled her commitment to helping others who come from hard places. In 2017, Mandi took a bold step toward her dream and launched Synergy Family Services, a space built to empower and support families and individuals through trauma-informed care. Her team is trained in Trust-Based Relational Intervention® (TBRI), an approach designed to help individuals who have experienced trauma or are currently navigating difficult circumstances. Mandi believes deeply in creating a compassionate environment where healing and growth can happen, and her dedicated staff walk alongside those in need, providing a safe haven filled with love and understanding. Mandi is always eager to share her journey and connect with others. If you have questions or want to learn more, she encourages you to reach out via phone, text, or email, and she’ll personally respond. She emphasizes the importance of staying humble, counting your blessings, and, now more than ever, recognizing the need for community and support.
Mary Smiley Ford, CRNA, RN, MSN, is the owner and founder of Smiley Aesthetics. She began her aesthetics career in early 2019 while working as an anesthesiologist. In February 2022, along with her identical twin sister, Carla, she launched Smiley Aesthetics as a two-person mobile toxin and collagen business in Nashville and Knoxville, Tennessee. In just over a year, Smiley Aesthetics has started five brick and mortar locations and nearly 100 mobile injectors in nine states, a number that grows weekly. Ford has been trained by some of the top providers in the country and continues to receive training. Carla Smiley Pierson, DNP, MBA, RN is an experienced, innovative, and business-savvy Registered Nurse with a proven track record of leadership in the hospital and healthcare industry across multiple disciplines. As the Co-founder and Co-owner of a successful medical aesthetics company that achieved over a million in revenue within its first year, Carla brings a unique blend of clinical expertise and entrepreneurial acumen to everything she does. Her diverse skill set spans critical care medicine, oncology, regulatory and accreditation standards, core measures, financial and clinical operations, and project implementation. With a Doctorate in Nursing Practice and an MBA, Carla is a dynamic consulting professional, committed to driving innovation and being a catalyst for change in the healthcare industry.
Rob Whitfield is a seasoned management consultant with a passion for driving transformation and behavior change, helping teams and organizations unlock their full potential. With a focus on diagnosing, designing, and building experiences that reframe how teams work, Rob's mission is to unleash latent value and drive real business results. His approach centers on aligning with business priorities and advancing agendas through expert facilitation and team coaching. Over his career, Rob has worked globally, transforming strategies, technologies, processes, and the ways people work and think. With his leadership, thousands of individuals and numerous companies have achieved personal and business results they once struggled to reach. As a certified executive coach, master trainer, public speaker, and event designer, Rob brings a wealth of expertise to every project. With a proven track record in leading complex, customer-centric transformations across various industries—including entertainment, telecoms, retail, education, energy, and more—Rob is known for his motivational leadership, delivering excellence while maintaining a flexible style and a sense of humor. His experience spans sectors such as transport, central and local government, gaming, and fashion, making him a versatile and dynamic leader in his field.
With 16 years of experience in the payment processing industry, Tyler brings a wealth of expertise and insight to help businesses navigate the ever-changing payments landscape. In 2009, Tyler founded PPSW, which quickly grew into a successful merchant processing ISO. In 2017, Tyler acquired the POS company VersiTouch and transformed it into VersiTech, a restaurant technology company focused on delivering cutting-edge point-of-sale technology through a local partner network. At VersiTech, Tyler and the team believe that every business deserves personalized support, which is why they work closely with local partners to offer a unique customer experience. The focus is on making technology work seamlessly for businesses with as little hassle as possible. VersiTech is known for its adaptability and going the extra mile for customers, taking pride in serving as a calming presence and a source of relief for partners. As a visionary leader, Tyler is passionate about helping businesses grow through technology. His goal is to make VersiTech a major competitor in the POS industry, offering innovative solutions and smooth processes for customers. Tyler leads by example, valuing his employees as family and striving to help them thrive both personally and professionally.
Tyrone Hazen is the founder of Puffin Drinkwear, a company he launched in 2019 with a vision to create fun, innovative drinkwear products that make people laugh. In the process, he pioneered an entirely new product category. Under Tyrone’s leadership, Puffin Drinkwear has experienced rapid growth, earning recognition from Inc. Magazine as the Fastest Growing Company in Oregon and ranking #131 in the US in just four years. As the head of partnerships, Tyrone oversees business development and strategic alliances, working closely with stakeholders to expand market reach and build a loyal customer base. With over a decade of experience in entrepreneurship and product innovation, Tyrone holds a BA in Economics from UCLA. He is passionate about using his skills to create a positive impact on society, the environment, and collective consciousness, while fostering a culture of collaboration and community among his team and partners.
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