Question
As part of a VC fund, I get screen lot of startups. One important criteria is % share holding by the founding promoters. Low promoter holding like 4 guys with 25% stake each does not give me the confidence to close the deal. I always like one guy with above 60% stake. Your thoughts please
Answer
I would just like to add to what the other poster wrote by mentioning the importance of dilution in this process. My suggestion to you would be to create a multi-tiered share system with one class of voting shares and one class of non voting shares. From there, you would be able to set up one or two main people with a majority of the voting rights. If you’d like to discuss this in future detail, please feel free to ask a follow up and, of course, you are always welcome to schedule a call to further discuss your specific needs as well.
