Profit sharing has nothing to do with the type of equity, any profit sharing agreement is specific and can be anything. An investor can ask for royalties foreve

Profit sharing has nothing to do with the type of equity, any profit sharing agreement is specific and can be anything. An investor can ask for royalties forever if they want. I think you aren't aware of how the real world works, and have a textbook understanding. But not even that because you don't realize you can end up with basically nothing at the end holding only common stock that is given to W-2 employees. > your fantasy of founding a company You misread? Maybe intentionally. The company exists and has more customers than 99% of these YC startups. How many businesses are you operating? > preferred shares don't mean anything if you don't have investors Obviously, that's the context we're talking about. Bringing on investors. You think common stock is no different than preferred stock which is your main error.