SHARE
CLASSES
The architectural foundation of corporate ownership and control.
Legal Compliance
Share structures carry significant legal weight. Consult with local counsel to ensure alignment with jurisdictional regulations before execution.
01. Common Share Classes
Common Stock
Ordinary Shares
Standard ownership with voting rights and dividend participation after preferred holders.
Investor Tier
Preferred Shares
Priority in liquidation and dividends. Includes Convertible and Participating variants.
Founder Control
Super-Voting
Enhanced voting power (e.g., 10:1) to maintain control with a minority equity stake.
Economic Only
Non-Voting
Equity participation without governance influence. Often used for public or employee pools.
Hurdle Based
Growth Shares
Benefit only from value increases above a set 'hurdle' price. Ideal for employee incentives.
02. Agreement Clauses
Governance
Control & Authority
Reserved Matters
Critical actions requiring specific majority approval.
Information Rights
Mandatory reporting and financial transparency.
Protective Provisions
Veto rights on actions affecting investor interests.
Exit
Transfer & Liquidity
ROFR
Existing holders get first right to buy shares being sold.
Tag-Along
Minority holders can join a majority sale.
Drag-Along
Majority can force a sale of 100% of the company.
Lock-up
Restricted sale periods post-investment or IPO.
Protection
Financial Safeguards
Liquidation Pref
Order of payout during a sale or wind-down.
Anti-Dilution
Protection against lower valuation rounds (Down Rounds).
Pre-emptive
Right to maintain ownership % in future rounds.
Related Guide
Funding Series
Not sure which round you're raising? Learn the difference between Pre-Seed, Seed, Series A–D, Bridge, Angel, and Grant funding.