Founders' Equity

Definition

The ownership stake held by a company's founders, typically established at incorporation and subject to dilution through subsequent funding rounds. Founders' equity is usually subject to vesting schedules and may carry different rights from investor shares, reflecting the intangible contribution of the founding team's vision and early-stage effort.

Related Terms

Fair Market Value Fairness Opinion Firm-Specific Human Capital First-Mover Advantage Franchise Value

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