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Question to HN - is one reason tech companies can do this is because a small group close to the founders typically have disproportiately high voting rights? I s

• jacquesm 12y ago
  That depends on what you class as 'disproportionally high' and what was written into the contract governing the investment. As long as the founders have 51% or more and there are no blocking terms in the contracts written prior to an acquisition offer there is nothing that can stop the founders from selling their stock. Savvy founders will retain control of their company even after an investment, if only because you will never get a 100% alignment of goals between investors and founders.