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Typically the founder of a company owns the company. So unless you want to buy the founder out, the founder still has ownership. Sure the moment it goes publi
by mkirklions 8y ago
Typically the founder of a company owns the company.
So unless you want to buy the founder out, the founder still has ownership.
Sure the moment it goes public, you need to ask the question 'who leads?', but you will have to buy out the owenership.
- jartelt 8y agoYes, founders always have ownership, but it is not always the case for the founders to own more than 50% of the company after a few financing rounds. Startups that do super well can pull this off, but I think it is safe to assume most normal startups do have super majority voting schemes that give founders total control of the company.
- dpark 8y agoThat's not what's being discussed at all. There is no question of ownership, but of voting rights. e.g., Brin and Page own something like 14% of Google stock combined, but control >50% of the votes. That's the exact setup that Domo is attempting, giving its CEO >90% of votes by virtue of getting 40 votes per share.
- wpietri 8y agoThis is not typical at all for tech startups. If you take investment, the founder's share declines quickly: https://www.lawtrades.com/blog/answers/usual-share-percentage-seed-round/ https://www.lawtrades.com/blog/answers/usual-share-percentag... Even a single founder can be under 50% by the end of the series A, as you not only have two rounds of investors, but you have to carve out a chunk of equity for employees (10-15%). And if you have multiple founders, which is typical, no one founder may own more than 50% past the seed round.
- mkirklions 8y agoEh, you were trying really really hard. I think you knew what I meant. Or your head is in the clouds.