Privileged Voting Shares in Start-ups: A Powerful Tool – Used Correctly
Founding a start-up means investing not just money, but above all time, passion and a vision. It is all the more painful when, after several rounds of financing, the founders find themselves reduced to minority shareholders in their own company. Shares with privileged voting rights can help – provided one knows how to use them. This article explains what shares with privileged voting rights are, when their use makes sense, and what advantages and disadvantages they entail for founders and investors alike.