u/Pres_Trump is right. And the best way to structure a startup to avoid this problem is setting aside voting shares separate from equity shares (like Google). Most people don’t do that though as it’s clearly less desirable to investors (they want to have a say), and costs money in legal fees that early stage startups typically don’t have.
u/Pres_Trump is right. And the best way to structure a startup to avoid this problem is setting aside voting shares separate from equity shares (like Google). Most people don’t do that though as it’s clearly less desirable to investors (they want to have a say), and costs money in legal fees that early stage startups typically don’t have.