Founders can retain control against investor influence through several strategies. One common method is the use of dual-class stock structures, where founders hold shares that have more voting rights than those held by public investors. This allows the founders to maintain control even if they own a smaller percentage of the company. Another strategy is to maintain a majority stake in the company, ensuring they have the final say in major decisions. Founders can also negotiate for protective provisions in their investment agreements, which can limit investors' ability to control certain decisions. Lastly, building a strong board of directors that supports the founder's vision can also help maintain control.
Ever wondered why some companies stay under the control of their founders, while others shift into t...
Download model