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Founders never have preferred shares, at least not the same class of preferred (with the same preferences) as investors.
by throwaway-blaze 2y ago
Founders never have preferred shares, at least not the same class of preferred (with the same preferences) as investors.
- janjongboom 2y agoNot never. E.g. all the capital we as founders put in the business before we raised our seed round was converted into Series Seed Preferred shares at the same rights as angels / seed VC. Small portion of total equity but still.
- anxman 2y agoFounder Preferred is a special class of stock that can convert into Preferred when sold. It’s different from Common as it doesn’t affect the 409A. IANAL.