Comment on Conflicted CapitalparentComments−k__5yWhy would you even give up more than 49% of your company?−sebmellen5yYou might not realize that a 5% stake with two board seats is much more powerful than a 25% stake with one board seat. Corporate dynamics are weird.−k__5yAh, okay.I think, in Germany it's different, sorry.−sebmellen5yGanz ok. Ist ja sehr verwirrend.−rsweeney215yIt doesn't matter what % of your company you own. What matters is whether or not you control a majority of the board seats.−texasbigdata5yWell....technically.... what matters is your ability to replace and/or appoint board members :)−nradov5yBecause you need the money and have a weak negotiating position. Not every startup is like Facebook.
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Why would you even give up more than 49% of your company?
You might not realize that a 5% stake with two board seats is much more powerful than a 25% stake with one board seat. Corporate dynamics are weird.
Ah, okay.
I think, in Germany it's different, sorry.
Ganz ok. Ist ja sehr verwirrend.
It doesn't matter what % of your company you own. What matters is whether or not you control a majority of the board seats.
Well....technically.... what matters is your ability to replace and/or appoint board members :)
Because you need the money and have a weak negotiating position. Not every startup is like Facebook.