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Mark maneuvered for the best of both worlds with the dual class voting shares. He owns the majority of the vote but only ~13% of the share capital. From the rum
by reducesuffering 3y ago
Mark maneuvered for the best of both worlds with the dual class voting shares. He owns the majority of the vote but only ~13% of the share capital. From the rumblings I've heard, I don't think VC allow this type of Google/Meta share class anymore, and/or SP500 don't include new entrants, but not super knowledgeable here.
- siegel 3y agoI work with quite a few company with dual class voting common shares. I will never understand the notion of not implementing that at incorporation if you want it. Will you have the leverage to get a VC to agree to let you keep it? Maybe, maybe not. But the worst that happens is you get rid of it, which is virtually costless. Honestly, implementing a 10M share one class common company just to make a VC happy sends horrible signals for negotiating with investors. It shows that you are happy to pre-negotiate against yourself from the get go just to look VC friendly. If you cared about retaining control, why would you do that?