Make sure you get your shares right before making that VC transaction. (Image via Indianexpress.com/ C R Sasikumar)
The number and type of shares a founder owns in a startup is a crucial point to think about in the context of venture capital transactions.
Joint stock companies (JSC), which are the most common form of startup companies in Lebanon, may issue two types of shares: common shares and priority (or preferred) shares.
Common shares are usually held by the founders (they are the common shareholders) and priority or preferred shares are held by venture capital investors (called the priority or preferred shareholders).
Priority of preferred shares are a class of shares that have higher claims on the co…
Read the full article at: http://www.wamda.com/2016/05/priority-shares-liquidation-preference-lowdown