3 ms·
Its very common, so common that they call them "founders shares"
by iancmceachern 2y ago
Its very common, so common that they call them "founders shares"
- dilyevsky 2y agoThat’s not what that term means
- iancmceachern 2y agoPlease enlighten us
- dilyevsky 2y agoFounder stock almost always convert to common not preferred. Carta article about it: https://carta.com/learn/startups/equity-management/founder-shares/ https://carta.com/learn/startups/equity-management/founder-s... I recommend researching a topic at least a little bit before going on and commenting on it
- iancmceachern 2y agoThis serves my point not yours, the process is often very misunderstood by those being promised the equity, and it's often "converted" in ways that dilutes or outright takes away most of the value by the time the employees ever see financial gains from the equity.
- dcow 2y agoThat’s not what happens. Literally TFA covers the term “founders stock”. It really is a meaningless term to refer to common stock held by a founder.
- JumpCrisscross 2y agoNot a separate class of shares. Almost always, founder shares refer to the magnitude of the grant and the voting-rights agreement attached to it. ("Stock class" is a very specific term.)