There are several strategies that founders can use to maintain control in a startup. These include: 1) Retaining majority voting rights: Founders can retain control by holding onto a majority of the company's voting shares. This allows them to make key decisions and steer the company's direction. 2) Dual-class stock structure: Some companies, like Facebook, use a dual-class stock structure. This gives certain shares (usually those held by the founders) more voting rights than others. 3) Board control: Founders can also maintain control by holding key positions on the company's board of directors. 4) Protective provisions: Founders can include protective provisions in their company's charter that give them veto power over certain decisions. 5) Building a strong team: By building a strong team that shares the founder's vision, the founder can maintain influence over the company's direction even if they don't hold majority voting rights.
Ever wondered why some companies stay under the control of their founders, while others shift into t...
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