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Unfavorable opinion alert! Lets say they were publicly traded, and not held for institutions, VCs, and fonders. Would you as a person, buying Class B shares e
by jermaustin1 7y ago
Unfavorable opinion alert!
Lets say they were publicly traded, and not held for institutions, VCs, and fonders.
Would you as a person, buying Class B shares ever buy enough that the 20 votes per share matter? Why does the number of votes to you matter, unless you sank a few hundred million into the company (at which point, you would be an institution or vc), your votes wouldn't matter with any of the classes.
- gtfratteus 7y agoCreating a share structure like this makes me worry that the founders will continue to have a controlling stake in the company, and new investors won't be able to exert any influence over the company. Companies run by ideologues like WeWork often do a lot of things that aren't necessarily in the best interest of their investors (like banning meat from their offices). If the public investors have no power to reign that in, you're completely at the mercy of the founder.
- dragandj 7y agoThe reverse of that argument is "if my vote doesn't matter, why do they want to additionally shrink it by 20x"?
- goobynight 7y agoWhile the answer would be no for most, it helps to have VCs and institutions that have a buy-in price similar to yours, essentially advocating to protect everyone's investment.